Samsung Talks About Potential 25% US Tariff on Smartphones

A few days ago, President Donald Trump threatened to impose a 25% tariff on smartphones, including the Samsung Galaxy. This came as OEMs were planning to build facilities outside the United States. Now, regarding this matter, Samsung has shared its view on the current situation and what the company is considering in the future.

Trump’s tariff threat may force Samsung Electro-Mechanics to rethink its supply strategy

Samsung Electro-Mechanics, a subsidiary of Samsung, produces a wide range of components and supplies globally. Industry analysts expect that the US tariff may indirectly affect the component company as it supplies multilayer ceramic capacitors (MLCCs) and camera modules for smartphones and laptops.

Commenting on the matter, Samsung Electro-Mechanics CEO Deok-Hyeon Jang recently said (via Newsis), “We need to produce and sell first, so we are examining our supply chain to see if there will be any problems. Once the tariff issue is decided in the mid to long term, we will need to consider ways to reorganize our supply chain accordingly.”

President Jang Deok-hyun (Image credit: Newsis)

So, if the US tariff hits, the component firm may reorganize its supply chain so that it can mitigate the impact. Industry analysts expect that smartphone makers may also ask for lower component prices because of the tariff. In this matter, Jang said the company has not yet made a decision and will look into it a little more.

Meanwhile, Samsung Electro-Mechanics is also exploring expansion opportunities. It plans to expand its factory in Calamba, Philippines, to make more MLCCs for vehicles. Jang said that the company is currently in talks with the Philippine government, though it has not made a final decision.

In related news, industry experts believe that after the imposition of a 25% tariff, the prices for Galaxy smartphones in the US may increase by up to 40%. Since Samsung produces its smartphones outside the United States, the company is concerned about how its business will shape in the future.