Samsung warns of risk of lower demand amid US tariff policy
By ForGeeks Samsung reported record revenue for the first quarter of 2025, but expressed concern about the impact of tariffs and U.S. export restrictions on demand and the cost of its products.
At the time of the quarterly report, Samsung Chief Financial Officer Sung-cheol Park said the continued uncertainty over U.S. tariff policies creates a potential risk of lower demand. He said new tariffs and tighter export controls on artificial intelligence-related products could affect sales momentum in the second half of the year.
He said the new tariffs and tightened export controls on artificial intelligence-related products could affect sales momentum in the second half of the year.
In addition, he noted that these tariffs could raise the cost of components used in Samsung’s smartphones, which in turn would negatively impact the company’s overall revenue.
Samsung recorded record revenue of 79.14 trillion Korean won (about $55.6 billion) for the first quarter of 2025 ended March 31. The main contribution to the result was the successful sales of the Galaxy S25 series. At the same time, net profit amounted to 6.7 trillion won (about $4.7 billion), up slightly from 6.5 trillion won or $4.6 billion in the previous quarter.
Despite record revenue, the chip division came under pressure. It posted an operating profit of 1.1 trillion won ($774 million), down from 2.9 trillion won ($2 billion) last quarter. The reason was the loss of some orders due to tighter U.S. export restrictions on shipments to China of chips for AI devices.
The company said it had lost a portion of its orders due to the tightening of U.S. export restrictions on shipments of chips for AI devices.
The Financial Times previously reported that Samsung’s profits were temporarily boosted earlier in the year by bulk chip purchases by Chinese customers ahead of the new tariffs. However, the effect was short-lived and failed to offset the impact of the new restrictions.
The publication also notes that new U.S. tariffs on semiconductors and consumer electronics, including smartphones and TVs, could lead to higher prices. That’s especially true for products made in Vietnam and Mexico, where Samsung’s key factories are located.
The article Samsung warns of downside risk amid U.S. tariff policy was first published on ITZine.ru.
