Daijiworld Media Network - Seoul
Seoul, Apr 6: South Korean tech behemoth Samsung Electronics may be forced to revamp its global manufacturing strategy, following US President Donald Trump's announcement of steep new reciprocal tariffs, including a 25% duty on South Korean imports, industry insiders said Sunday.
The latest US trade policy, unveiled last week, includes a minimum 10% ‘baseline’ tariff on all imports and country-specific tariffs, some of which are significantly higher. South Korea, home to Samsung’s headquarters and key production facilities, is facing one of the highest levies at 25%, with tariffs set to take effect from Wednesday (US time).
Though vehicles, semiconductors, and pharmaceuticals are exempt, most consumer electronics including smartphones fall under the new tariff structure.
According to Yonhap news agency, experts believe Samsung will need to accelerate diversification of its production base, especially for premium smartphones targeting the US market.
Currently, 50% of Samsung’s smartphones are made in Vietnam, which faces an even steeper 46% tariff under the new policy.
Other production hubs — India (26%), South Korea (25%), Brazil (10%), and Indonesia (unspecified) — are now being reevaluated based on cost-efficiency and tariff exposure.
“Brazil is emerging as a strong candidate to absorb more premium model production due to its lower tariff rate and geographic proximity to the U.S.,” said one source familiar with Samsung’s operations.
While no decisions have been finalized, internal discussions are underway ahead of the company’s high-stakes summer launch of its next-generation foldable smartphones. “Nothing has been decided yet,” a Samsung official stated.
The broader implications for South Korea’s export-dependent economy are also raising alarms. Analysts warn that Trump’s protectionist stance could cripple exports, especially with similar tariffs already imposed on steel, aluminium, and foreign cars.
Trade experts cautioned that the latest US tariff regime could cause severe disruptions to the global supply chain, raise prices for American consumers, and strain South Korea-US economic relations.
Samsung, which leads the global smartphone market, will now have to balance cost, logistics, and tariff risks as it navigates the shifting tides of international trade.