The constantly evolving tariff issue has brought some uncertainty to the tech industry and markets in general. Initially announced tariff figures are later reduced or reversed (or even increased in some cases). Everything depends on the direction the Washington administration’s negotiations with other governments take. In this complex scenario, Samsung is trying to head that off, with company CEO Jay Y. Lee flying to the US to support the trade talks.
Samsung to join US trade talks
Samsung, like many tech giants that operate in the US, has skin in the game. The company relies on a lot of outside manufacturing from countries like Vietnam, India, and China. However, the tariffs could result in Samsung’s products being more expensive. This is why South Korea is in trade talks with the US to work out a deal, and Samsung is hoping to lend its support.
The company has already invested heavily in new chipmaking facilities in the US. In fact, Trump had hinted at Samsung’s plan to build “massive facilities” in the country. However, chips are just one piece of the puzzle. Smartphones consist of dozens of components made by factories located all around the world.
If Samsung really wants to reduce its tariffs as much as possible, it will need to find a way to source it all from the US. However, we imagine that it will be a near-impossible task.
Apple faces a similar dilemma
Samsung isn’t alone in facing the potential of high tariffs affecting the price of its products. Apple, an American company, is also facing pushback from the Trump administration. Apple relies heavily on China for its components. It is trying to source more from its supply chain in India to lessen the blow.
Obviously, making everything in the US would be a lot easier, but that might prove to be difficult. Apple has stated several times in the past that making its iPhones in the US would be impossible, at least for the near term. Countries like China already have the facilities and equipment in place.
Building in the US would be possible, eventually, but the costs could easily outweigh the tariffs. This means it might be better off for Apple to just pay the tariffs than to set up shop back home.
The post Samsung At the Tariff Table: Firm Joins Critical Trade Discussions appeared first on Android Headlines.
