U.S. President Donald Trump’s administration has announced steep reciprocal tariffs on key smartphone manufacturing countries, including Vietnam and China, where Samsung Electronics and Apple produce most of their devices. With smartphone prices in the U.S. expected to rise, concerns are growing over a potential decline in sales.
Some industry experts warn that if the Trump administration grants tariff exemptions for Chinese-made iPhones but not for competitors, Samsung’s position as the top smartphone maker could be at risk.
The Trump administration on April 2 said it would impose a 10% universal tariff on all countries, along with additional country-specific reciprocal tariffs on 60 nations. Vietnam faces the highest tariff at 46%, followed by Thailand (36%), China (34%), Indonesia (32%), Taiwan (32%), Switzerland (31%), India (26%), South Korea (26%), Japan (24%), and the EU (20%). Including previous tariffs, China’s total tax burden rises to 54%.
Vietnam and China, the main production hubs for Samsung and Apple, have been hit with some of the highest tariff rates. More than half of Samsung’s smartphones are produced in Vietnam, while over 85% of iPhones are made in China. Some of Samsung’s low-cost ODM models are also manufactured in China, but since these are mostly sold in emerging markets rather than the U.S., the direct impact of the tariffs is expected to be limited. Both companies also produce smartphones in India, but most of these are supplied to the local market.
Still, industry experts agree that Samsung and Apple will have no choice but to raise smartphone prices in the U.S. due to the tariff fallout. Higher prices typically lead to weaker sales and financial strain, making this a major concern for both companies. A representative from a global smartphone manufacturer noted, “Unlike China or India, the U.S. is a key market for high-end premium smartphones, which makes it especially important for both Samsung and Apple. These tariffs will likely push manufacturers to reevaluate their global production strategies.”
Experts expect Apple will take the biggest hit. The U.S. is Apple’s largest market, where it dominates sales. According to market tracker Counterpoint Research, Apple held 65% of the U.S. smartphone market in the fourth quarter of last year, while Samsung had 18%. Apple also faces a higher tariff rate (54%) on Chinese-made iPhones compared to Samsung’s 46% on Vietnamese-made phones.
“The U.S. and China are Apple’s two most important markets, and China is also its largest production hub,” said an industry expert. “High tariffs will likely hit iPhone sales in the U.S., and if anti-American sentiment keeps growing in China, sales there could fall as well. On top of that, tighter Chinese regulations could further disrupt production.”
Some analysts say Trump’s tariff pressure on Samsung and Apple could create an opening for Xiaomi to challenge their dominance in the global smartphone market. If tariff-driven price hikes lead to weaker sales for Samsung and Apple, the Chinese smartphone maker could gain market share and climb the rankings. According to Counterpoint Research, Samsung led the global smartphone market last year with a 19% share, followed by Apple at 18% and Xiaomi at 14%.
