Samsung Galaxy phones could soon get costlier in the US. Reports suggest the Trump administration is considering imposing a 10% tariff on all imports, potentially increasing the prices of imported goods. To make matters worse for Samsung, the newly elected US President might exempt local companies like Apple and Tesla from these tariffs. If true, Apple’s iPhones could gain a price advantage over Galaxy phones.
Donald Trump’s “America First” import policies could make Samsung Galaxy phones costlier in the US
The US government recently announced a 25% tariff on imports from Canada and a 10% tariff on goods from China and Mexico. Since Samsung produces most of its Galaxy smartphones in South Korea, Vietnam, India, and Brazil, its devices are unaffected by these tariffs. However, the Trump administration is now considering a 10% tariff on all imports.
If they move forward with this decision, Samsung devices could become more expensive, making it harder to compete with Apple in the US market. Notably, the US government might exempt Apple from these tariffs. This is despite Apple importing most iPhones from China — around 85% of iPhones sold worldwide are made in China.
If the Trump administration doesn’t exempt Apple’s imports from a 10% tariff, the playing field will remain level for Samsung. But if they do, Samsung faces a price disadvantage, which only makes matters worse for it. Apple already dominates the US smartphone market with a nearly 60% share. However, Samsung still holds a substantial chunk of this market (about 23%).
In fact, 15% of Samsung’s global smartphone sales come from North America. Apple iPhones gaining a price advantage over Galaxy phones could affect its sales. It remains to be seen if the South Korean government could intervene to help the biggest contributor to its economy. Perhaps Samsung could actively lobby the US government against the tariffs, promising to invest in US-based manufacturing.
The Korean conglomerate already operates a semiconductor plant in the US and is building two more chip factories. Maybe investing more in the US could convince the Trump administration to exempt it from import tariffs. Samsung is already dealing with rising component costs, particularly for smartphone chipsets. If additional tariffs are imposed, they could further hurt the company’s profitability.
