Samsung announced that it may transfer production of its products to other countries. The announcement was made during the company's earnings conference call held today.
To put this into context, many Samsung products are manufactured in Vietnam, which has now become the target of an additional 46% tariff from the US, which would make them very expensive to sell in the US.
Due to the pressure of tariffs, Samsung could move its production to the US (where the tariff doesn't exist) or to India with a 26% tax. Another good option would be Brazil, where tariffs are only 10%.
The move shouldn't happen immediately, as Donald Trump has postponed the tariffs for 90 days for countries to reach agreements with the US. This means that Samsung can wait for the reaction of the countries where it already has factories before deciding whether to relocate its production.
In addition, it's worth remembering that the US president has already backed down and exempted cell phones, computers and chips imported from China from tariffs, which indicates that negotiations could make significant progress in the coming weeks.
