Samsung remains vigilant despite US tariff exemptions for smartphones

A man riding an electric motorbike passes by the logo of Samsung Electronics on a billboard in Bac Ninh, Vietnam, Tuesday. AFP-Yonhap

Samsung Electronics remains on alert amid the Donald Trump administration’s unpredictable trade policies, despite the United States granting tariff exemptions for smartphones, laptops, personal computers and semiconductor equipment.

The U.S. Customs and Border Protection said Saturday (local time) that those devices will be excluded from the sweeping 10 percent baseline tariff on nearly all countries, as well as the retaliatory 125 percent duty on China.

Following the updated guidance, Samsung has been considered one of the beneficiaries along with Apple and TSMC. Bloomberg described the measure as a “big win” for major tech firms.

The optimistic outlook stems from Samsung’s heavy reliance on production in Vietnam, which is on the verge of facing a 46 percent “reciprocal tariff” from the U.S. if trade talks between Hanoi and Washington fail following the current 90-day pause. The Korean company produces nearly 50 percent of all Galaxy smartphones sold globally at its Vietnamese facilities.

However, Samsung has maintained a cautious stance.

“We’re continuing to monitor U.S. tariff policies closely,” a company official said Sunday.

That cautious tone reflects the lingering uncertainties surrounding Trump’s trade agenda.

“The president has stated that autos, steel, pharmaceuticals, chips and other specific materials will be included in specific tariffs to ensure tariffs are applied fairly and effectively,” White House Press Secretary Karoline Leavitt said in a statement announcing the latest exemptions.

Trump also said Saturday that his administration will provide an update on semiconductor tariffs Monday.

“We’ll be very specific on Monday,” he told reporters aboard Air Force One, when asked about the rationale behind the exemptions and plans for semiconductors.

U.S. President Donald Trump, right, speaks alongside Apple CEO Tim Cook in the State Dining Room of the White House in Washington in March 2019. AFP-Yonhap

The smartphone tariff exemptions appear to benefit Apple, Samsung’s chief rival, even more.

Apple relies heavily on Foxconn facilities in China to produce most iPhones sold globally. If Washington had gone ahead with the 125 percent reciprocal tariff on China — on top of a separate 20 percent duty to pressure Beijing over fentanyl — iPhone prices in the U.S. could have tripled.

While China responded to the U.S. tariffs with retaliatory policies, Vietnam has sought to avoid penalties by courting the Trump administration.

Before the exemptions were announced, securities analysts therefore predicted that Samsung could gain U.S. market share.

“Apple, which produces 90 percent of its iPhones at Foxconn’s facilities in China, is inevitably facing an increase in iPhone prices,” KB Securities analyst Kim Dong-won said on Thursday.

“Samsung Electronics, on the other hand, can expand supply through 90 days of pre-production for smartphones, securing enough time to relocate its eight global production bases.”

However, strong iPhone sales in the U.S. may soften the impact on Samsung’s component business. The Korean firm supplies Apple with displays, semiconductors and other key parts.

There had been concerns over potential smartphone price hikes slowing demand, weighing on Samsung's semiconductor business.