With the Trump administration's announcement of tariffs on imported goods to the United States, the potential price increase of smartphones has become a pressing concern for American consumers. The varying tax amounts, depending on the smartphone's country of manufacture, add to the uncertainty.
Similar to all smartphone brands in the United States, Samsung also needs to pay a tax to the US government for importing its products into the country. The Korean company has no assembly line in the US and must ship its products from countries like Brazil, Vietnam, and India to the US, which makes it susceptible to hefty taxes.
Analysts have foreseen a potential 43 percent increase in iPhone prices due to the tariffs. Similarly, Samsung, faced with the same unavoidable cost increase, is expected to follow suit in order to offset the impact on its customers.
| Country | Vietnam | India | Brazil | South Korea |
| Amount of tariff | 46% | 27% | 10% | 25% |
Back in 2019, Samsung ended smartphone production in China due to a growing rivalry with domestic brands and focused its efforts on Joint Design Manufacturing (JDM) by partnering with local manufacturers. China's imports to the US are hit with a 54 percent tariff.
Currently, a significant portion of Samsung phones are produced in Vietnam and exported to the United States. The Southeast Asian country is Samsung's biggest partner in manufacturing, accounting for almost 45-60 percent of Samsung's global production. Vietnam's imports to the US are now susceptible to a 46 percent tariff.
Samsung also has assembly lines in India, Brazil, and South Korea, with each of these countries being hit with a different tariff. Among others, Brazil is assigned the lowest tariff (10 percent), and shifting production to the South American country could be a wise choice for Samsung. Apple is also said to be considering expanding iPhone production in Brazil to minimize the impact of tariffs on customers.
25 Comments - Add comment