Crisis in the US TV market presents Samsung with a solid opportunity

Samsung has been the world's top TV brand for nearly two decades. It also enjoys a commanding position in the US TV market, one of the most lucrative in the world, where the demand for some of its most expensive and high margin products is higher than anywhere else.

Like many other industries, the TV market is now reeling from the shock delivered by President Trump's tariffs, with major players like LG and TCL having to contend with the difficult choice of either having to raise prices to reduce margins. Meanwhile, Samsung remains largely unfazed by this crisis.

Samsung has a major manufacturing hub in Mexico where TVs and other products, including home appliances, are made. The vast majority of the TVs that it sells in the United States are manufactured in Mexico and then shipped over the border.

Mexico has largely avoided being hit by the 10% global baseline tariff imposed by President Trump in addition to the much steeper reciprocal tariffs that are as high as 104% for China.

Having its production base in Mexico will help Samsung avoid these penalties, while its rivals like TCL, LG, and Hisense have to pay significantly more due to their production facilities in countries like China and Vietnam.

Samsung's not resting easy, though. Yong Seok-woo, president of its visual display business, has said that the company will keep a close eye on the US tariff policy and will allocate production accordingly to the 10 or so production facilities that it has across the globe.