Samsung Addresses US Tariff Challenges Through Production Allocation

Samsung Electronics Co. said it plans to leverage its global production network to counter new U.S. tariffs, including retaliatory duties targeting goods from nearly all countries, including South Korea. 

"We sell TVs, monitors and sound bars in the United States, with TVs as our main product," Yong Seok-woo, president and head of Samsung Electronics' visual display division, said at a news conference, Yonhap reported Monday. 

Yong said most of the TVs are manufactured in Mexico. 

Last week, U.S. President Donald Trump announced plans to impose a 10 percent minimum base tariff on all imports to the U.S. as well as retaliatory tariffs that vary by country, including a 25 percent tariff on South Korea. 

Goods from Mexico and Canada are not affected by the new tariffs. 

"The impact of these retaliatory tariffs is small, but we are closely monitoring the situation as U.S. trade policy continues to evolve," he said. 

"With 10 global production bases, we plan to address these challenges through strategic production allocation," Yong said. 

Samsung currently produces TVs in several countries, including India and Vietnam. While products from Mexico are exempt from the new tariffs, products from Vietnam are subject to a 46 percent retaliatory tariff when entering the U.S., and products from India are subject to a 26 percent tariff. 

Yong stressed that Samsung Electronics does not plan to raise prices of its flagship models because of the tariffs. Instead, the company is expanding its lineup of mid-range and entry-level TVs. 

"We have expanded our 2025 product lineup in this segment," Yong said, adding that customers may experience better prices. 

Samsung Electronics maintained its position as the global TV market leader in 2024, posting a 19th consecutive year in first place. 

The company accounted for 28.3 percent of global TV sales in 2024, followed by LG Electronics Inc. with a 16.1 percent share. 

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