Samsung Electronics and LG Electronics are bracing for a significant blow to their premium TV businesses as U.S. President Donald Trump considers imposing a 25% tariff on Mexican imports. South Korean manufacturers, which rely heavily on Mexican production hubs, are expected to suffer substantial losses if the tariffs take effect.
Industry experts warn that South Korean companies could find themselves at the forefront of a tariff war, particularly as China is likely to support its TV makers with government subsidies.
An analysis by market research firm Counterpoint Research, based on U.S. International Trade Commission (ITC) data, shows that roughly 88% of TVs imported into the U.S. would be impacted by Trump’s tariff policy. In 2023, TVs imported from Mexico were valued at $9.2 billion, accounting for 78% of U.S. TV imports. Chinese-made TVs totaled $1.1 billion, representing just 10% of imports.
A tariff on Mexican imports would inevitably hit manufacturers exporting from Mexico to the U.S. hardest. Among them are Samsung and LG, whose premium TV businesses are heavily dependent on the North American market, where demand for high-end models remains strong. In the first three quarters of 2024, South Korean brands commanded 48% of the North American TV market, while Chinese brands held a 27% share.
“If tariffs are imposed, Chinese companies producing TVs in Mexico will also suffer, but Korean firms focused on premium strategies can’t afford to deprioritize the North American market, making their situation more complex,” an industry insider said.
Manufacturers are exploring ways to diversify production to offset the potential impact. Although Trump announced on Feb. 3 that the 25% tariff on Mexican imports would be delayed for a month, a 10% tariff on Chinese goods remains in place. Samsung is considering expanding production in Europe and Southeast Asia or even manufacturing TVs directly in the U.S. The company currently operates factories in Tijuana, Vietnam, and Hungary. LG, which produces TVs in Reynosa, Mexico, also runs facilities in Indonesia, Brazil, and Poland.
Rising TV prices appear inevitable. Calvin Lee, a researcher at Counterpoint Research, said increasing production in Europe and Southeast Asia may offer a short-term fix, but global TV prices are likely to climb under Trump’s trade policies. However, Lee noted that tariffs could be used as a negotiation tool, urging companies to stay vigilant and adaptable.
Meanwhile, Chinese TV makers are expected to gain a competitive advantage due to potential government subsidies. Last year, China announced plans to issue 1.3 trillion yuan ($178 billion) in long-term government bonds, with a portion likely earmarked for consumer goods subsidies, including electronics.
“If China offers subsidies, their manufacturers may maintain current prices despite U.S. tariffs,” an industry official said. “Korean companies will need to collaborate with local distributors to minimize the impact of tariffs on consumer prices.”
