Samsung confirms it may relocate some production sites to avoid US tariff impact

The US tariffs were understandably a major point of discussion during Samsung's Q1 2025 earnings call today. The company is particularly vulnerable to these tariffs as it has manufacturing facilities across several countries, some of which have been slapped with significant tariff rates.

There were reports that Samsung could shift the manufacturing of some products, particularly its mobile devices, to other production sites in order to reduce the impact of tariffs on its products. The company has confirmed during today's earnings call that this is being considered.

The company further added that its mobile division has pursuing profitability in this uncertain environment by focusing on increased sales of flagship phones. The video display and house hold appliance divisions are working on expanding premium products, and may also see their production relocated to other manufacturing bases to limit tariff impact.

Vietnam is where Samsung phones are made, and also its other mobile devices, that are then exported to the United States. Vietnam was hit with a 46% tariff rate. Reports emerged that Samsung may shift production of units meant for the US to India which had a 26% tariff rate, assuming no reduction in rates after individual governments strike trade deals with the US.

These tariffs have been paused for 90 days to allow for deals to be struck, but the 10% baseline global tariff still remains. So the company is still operating under a cloud of uncertainty which is hardly ever good for business. Nevertheless, Samsung is monitoring the situation very closely and will appropriate steps as necessary.