The biggest fear for tech fans regarding Trump’s tariffs is the potential impact they will have on the price of their favorite products. Unfortunately, we’ve already seen a few cases where this has happened. For example, the OnePlus Watch 3 is now slightly pricier in the US. Now, Samsung is warning about the potential impact of tariffs on its products in the US.
Samsung recently held an earnings call. The company disclosed its financial results for Q1 2025 to analysts and reporters, revealing some interesting details. The firm confirmed that sales of the Galaxy S25 series have been a hit. The company also teased what we can expect for its flagship tablets and smartwatches this year. Basically, AI implementation will continue to be a major focus.
Samsung projects reduced demand for its products
Samsung’s chief financial officer Soon-cheol Park also said during the earnings call that “ongoing uncertainty surrounding US tariff policies continues to pose a potential risk of demand slowdown.” The company projects that the tariff effects of recent US measures will impact demand for its products. This will particularly affect the AI chips Samsung sells to China. Samsung was earning healthy revenue by shipping AI chips authorized by the Washington administration to China. However, the updated trade restrictions will prevent it from continuing to do so.
Potentially more expensive devices
The executive also expects an increase in the prices of key components for its products. This includes the components for the company’s main smartphones. The increase in costs will directly impact their profit margins, forcing them to increase the prices of their products in the US due to Trump’s tariffs. It remains to be seen how much the price of the South Korean giant’s devices increases. Samsung must find price tags that allow it to maintain acceptable profit margins while not alienating millions of potential buyers.
In addition to smartphones, the US tariffs could increase the price of Samsung TVs. Potentially, the tariffs could also affect other home appliances. The impact of the tariffs on product prices will also depend largely on the actions taken by the current Washington administration on tariffs in the coming weeks.
Some key products could maintain their price
According to a recent report, Samsung will announce the Galaxy Watch Ultra 2 this year. The wearable could have the same launch price as the current generation. If the report is true, Samsung could still maintain prices on key products to some extent. Perhaps the company is willing to absorb some of the impact of the tariffs on certain devices in order not to lose potential sales.
