Trump’s tariffs could hit Samsung’s price advantage over Apple

The Donald Trump administration has imposed tariffs of 25% on goods from Canada and 10% on products from China and Mexico. Since most iPhones are made in China, this potentially drives up their cost, which benefits Samsung, whose phones are assembled in Brazil, India, South Korea, and Vietnam.

Samsung, whose phones are assembled in Brazil, India, South Korea, and Vietnam.

Possible new tariffs

The possibility of a 10% tariff on imports from all countries is being discussed. In that case, Samsung would lose its price advantage over Apple.

Expert Recommendations

Business professor Kim Kyung-won of Sejong University believes Samsung should actively lobby the U.S. government and consider investments in the U.S. economy, such as building chip factories.

Business professor Kim Kyung-won of Sejong University says Samsung should actively lobby the U.S. government and consider investments in the U.S. economy, such as building chip factories.

Costs rise and profits fall

Already, the company is facing rising prices for key components, especially processors, preventing significant hardware upgrades. The additional tariffs could cut into Samsung’s profits at a time when the company is struggling in its key segment, the memory chip business.

Additional tariffs could cut into Samsung’s profits at a time when the company is struggling in its key segment, the memory chip business.

Possible benefits to competitors

It has been reported that Apple and Tesla products may be exempt from the new tariffs. If confirmed, Samsung would be at an even greater disadvantage, which could negatively impact its plans to sell 40 million Galaxy S25 devices.

Samsung’s plans to sell 40 million Galaxy S25 devices could be affected.

Company’s financial position

The company has a 23% share of the US smartphone market and North America accounts for 15% of its total sales. Despite the mobile division’s revenue growth of 4% in the fourth quarter of 2024 to KRW 117.3 trillion ($80.8 billion), operating profit fell 22.2%. Additional tariffs could exacerbate this situation and increase pressure on the profitability of the business.

Additional tariffs could exacerbate this situation and increase pressure on the profitability of the business.