Samsung may face many problems in the second quarter of 2025 due to new tariffs imposed by the US
After a successful first quarter of 2025, when Samsung's results exceeded analysts' expectations, the company may face some challenges in the second quarter of this year.
Here's What We Know
The main challenges are related to global economic conditions and tariffs imposed by the Trump administration. The US recently imposed a 46% tariff on imports from Vietnam and despite the temporary 90-day pause that is now in place, the basic 10% tariff on imports of products from Vietnam remains in place. This increases production costs as most of Samsung's smartphones are manufactured there. The alternative is to shift production to India, where tariffs are 26%, but that depends on the outcome of tariff negotiations.
In addition, tariffs could reduce demand for memory products, which is especially critical for Samsung given its competition with Chinese manufacturers in the DRAM and NAND markets. The company is also experiencing a shortage of orders for HBM3E modules from NVIDIA. These factors pose significant risks to Samsung's financial results in the second quarter. The company is forced to look for ways to minimise losses, including possible price increases for customers or margin cuts.
Source: Sammobile
