US President Donald Trump has announced new import tariffs that could significantly impact smartphone prices and the profit margins of leading manufacturers.
Apple and Samsung, which dominate United States smartphone sales, are particularly vulnerable due to their heavy reliance on production in China and Vietnam. Under the new tariff scheme, China faces a 34 per cent import levy, while Vietnam is subject to a 46 per cent fee.
Industry analysts warn that if the tariffs remain unchanged, consumers will likely see higher prices on smartphones and other electronic devices.
Ben Wood, chief analyst at CCS Insight, noted that Apple and Samsung may attempt to cushion some of the added costs, but this would put pressure on their profit margins.
Foxconn, Apple's primary manufacturing partner, has been shifting production to India in an effort to reduce reliance on China. However, India is also affected by the tariffs, facing a 26 per cent reciprocal rate.
Samsung faces similar challenges, with limited options to offset the impact of the new tariffs. Even if the company moved all production back to South Korea, it would still be subject to a 25 per cent import duty.
The new tariff measures are expected to have broad implications for the consumer electronics industry, potentially reshaping global supply chains and pricing structures.
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