Samsung Electronics Shares Hit 4-Year Low On Tariff Concerns

Shares in Samsung Electronics, the world’s leading memory chip maker, fell on Wednesday to their lowest level in over four years, as worries grew over the impact of potential U.S. tariffs under the new Trump administration, according to Jihoon Lee and Hyunjoo Jin for Reuters.

South Korean President Yoon Suk Yeol has also expressed concerns, warning that Trump's proposed tariffs could lead Chinese rivals to cut export prices, potentially undermining South Korean chip firms' competitiveness abroad. I Photo: Samsung

Samsung has struggled in 2024, lagging behind global chipmakers like TSMC and Nvidia, especially in capturing the growing demand for artificial intelligence (AI) chips.

Trump’s potential tariffs on Chinese imports could disproportionately impact Samsung, which relies more heavily on Chinese customers than its local competitor, SK Hynix, said BNK Investment & Securities analyst Lee Min-hee.

SK Hynix has been expanding sales of high-end AI server chips to U.S. clients like Nvidia, whereas Samsung’s exposure to the Chinese market makes it more vulnerable to the proposed tariffs.

Trump’s tariff plan includes a universal 10% tax on imports and a 60% tax on Chinese goods, which analysts warn could reduce demand for electronics using these chips.

Greg Noh from Hyundai Motor Securities noted that the tariffs may decrease global demand for electronics.

South Korean President Yoon Suk Yeol has also expressed concerns, warning that Trump's proposed tariffs could lead Chinese rivals to cut export prices, potentially undermining South Korean chip firms' competitiveness abroad.