Donald Trump just gave Samsung a 'huge problem' and it is called Vietnam

US President Donald Trump's latest tariff hikes have created a significant challenge for Samsung Electronics, with Vietnam emerging as a focal point of the escalating trade tensions. The new tariffs, which raise duties on Vietnamese exports to the US to 46%, threaten to disrupt Samsung's global supply chain and its reliance on Vietnam as a manufacturing hub.
Vietnam has been a cornerstone of Samsung's manufacturing strategy since the South Korean tech giant entered the country in 1989. The company produces 60% of its global smartphone output in Vietnam, with many of these devices destined for the US, where Samsung is the second-largest smartphone vendor. Vietnam's $120 billion trade surplus with the US has now placed it squarely in the crosshairs of Trump's tariff policies.
The tariff hike has exposed vulnerabilities in Vietnam's export-driven economy and Samsung's heavy reliance on the country. While Vietnam has secured a temporary reprieve with a 90-day pause on the full tariff implementation, the uncertainty has already prompted Samsung and its suppliers to explore alternative production strategies. Options include increasing output in India or South Korea, though these shifts would be costly and time-consuming.
The tariffs not only jeopardize Samsung's operations but also highlight the risks of over-reliance on a single manufacturing base. Vietnam, which has benefited from companies diversifying away from China, now faces challenges such as rising labor costs, power supply issues, and the loss of earlier tax incentives.