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[News] Vietnam Faces 46% U.S. Tariff Threat, Putting Samsung at Risk with Majority of Phones Made There


2025-04-15 Consumer Electronics editor

Trump’s tariffs have sent shockwaves through the tech industry, prompting companies to reassess risks across their global supply chains. According to Reuters, Samsung Electronics’ TV business is expected to be less impacted by U.S. tariffs than its competitors, as most of the TVs it sells in North America are manufactured in Mexico. However, another Reuters report notes that the impact could be greater on its smartphone business, which primarily relies on production in Vietnam.

The report highlights that a large share of Samsung’s global smartphone production takes place in Vietnam. As further noted, Samsung is Vietnam’s largest foreign investor and exporter, with government estimates showing that the company’s exports from the country reached approximately USD 54 billion last year—accounting for about 15% of Vietnam’s total exports.

This heavy reliance on Vietnam could become a liability, as the Trump administration has proposed a steep 46% tariff on Vietnamese imports, according to the report. Although Vietnam—and by extension, Samsung—secured a temporary reprieve, with the rate capped at 10% for 90 days, Reuters indicates that Samsung and its suppliers would be among the hardest hit if the higher tariffs take effect in July.

The report, citing sources, notes that Samsung and its suppliers are exploring production adjustments, which could include ramping up output in India or South Korea—though such changes would be demanding in both time and resources.

While shifting production to India may appear viable, Reuters points out that Samsung would first need to expand its smartphone supply chain there, as India is currently capable of handling just 20% of the company’s total output.

In addition to smartphones, Samsung also manufactures TVs, home appliances, and display panels in Vietnam, as highlighted by Reuters.

Samsung isn’t alone in relying heavily on Vietnam for production. In recent years, the country has become a key manufacturing hub for global tech firms, with companies like Apple shifting the assembly of products such as iPads, MacBooks, and AirPods to Vietnam, as noted by Rest of the World.

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(Photo credit: Samsung)

Please note that this article cites information from Reuters and Rest of the World.

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