Samsung undermines Impact of US Tariffs Thanks to Its Mexican Factories

Samsung Electronics’ TV division is expected to be less affected by US tariffs than its competitors because most of its TVs sold in North America are produced in Mexico, an executive said.

However, Samsung, the world’s leading TV maker, will continue to monitor the changing US tariff policy and, depending on the tariffs, plans to distribute production accordingly across about 10 production bases around the world, said Young Seok-woo, president of Samsung’s visual display business.

Mexico has largely been spared Trump’s new 10% global base tariffs and the more severe reciprocal tariffs imposed on many trading partners.

China, in contrast, will be affected by a 34% US tariff, in addition to the 20% tariff imposed earlier this year, bringing the total new tariffs to 54%. Samsung faces increasing competition in the TV market from Chinese companies such as TCL and Hisense. Samsung is also preparing for the impact of US tariffs on its other key businesses, such as memory chips and smartphones, which could face a decline in demand. Shares of Samsung Electronics fell 4.3% on Monday amid a widespread market sell-off sparked by concerns about US tariffs.