Samsung Minimizes U.S. Tariff Impact on TV Sales with Mexico-Based Production

Samsung Electronics (KS:005930) is poised to weather U.S. tariff hikes better than competitors, thanks to its TV production strategy. According to Yong Seok-woo, President of Samsung’s Visual Display division, most of the company’s televisions sold in North America are manufactured in Mexico—shielding it from steep U.S. tariffs. Mexico was largely exempted from the latest 10% global tariff and the additional "reciprocal tariffs" announced by President Donald Trump.

In contrast, Chinese-made TVs now face a 54% total tariff, after a new 34% levy was added to the existing 20%, severely impacting brands like TCL and Hisense. Vietnam, where Samsung also operates factories, has been hit with a hefty 46% tariff, one of the highest among nine Southeast Asian countries affected.

Samsung, the world’s leading TV manufacturer, remains vigilant about shifting U.S. trade policies. The company plans to strategically allocate production across its 10 global manufacturing bases depending on tariff developments to minimize risks and maintain supply chain efficiency.

Despite its favorable position in the TV segment, Samsung could face challenges in other core businesses. Its memory chip and smartphone divisions may suffer from reduced global demand if tariffs continue to rise, especially in key markets like the U.S.

On Monday, Samsung shares dropped 4.3% amid broader market concerns tied to escalating trade tensions. As the company grapples with increasing competition from Chinese tech firms and geopolitical uncertainties, its diversified manufacturing approach may prove critical in maintaining market leadership.

By leveraging Mexico-based production and a flexible global supply chain, Samsung is navigating the tariff storm more smoothly than its rivals—positioning itself for resilience in a volatile trade environment.