usatoday24
New day, new tariff. The Trump administration led to its maximum tension peak with a 104% China tariffthat just a few hours ago rose to 125%. At the same time, the rest of tariffs were extended for 90 days and It was modified The percentage to a fixed 10%. Aim? Fully focus war on China.
Although the focus is on the main rival, there is a country that was in the peephole with one of the highest tariffs on the list: Vietnam. Attacking this country is to attack one of the most important Asian manufacturers in the world. One that, in the United States, is currently the second manufacturer. Yes, we talk about Samsung.
Why Vietnam. From the Start of the Commercial War Between the United States and China in 2018, Vietnam became In one of the main escape routes for manufacturers who wanted to overcome the tariff impact. Some of the big companies They began to transfer part of their production there, given their low labor costs, political stability qualified labor.
In recent years, we have seen giants such as Apple moving the production of products such as Airpods to Vietnamin his attempt to reduce dependence with the Chinese production chain. Trump is aware of the relocation of companies (including Americans) to this country, and wanted to punish him especially with a tariff of more than 40%, for now in the air.
A key ally. Such is Samsung’s investment in Vietnam, that its exports have come to suppose 25% of the total country. In 2024 he invested more than 220 million dollars at the Hanoi Research Center, and employs more than 100,000 people.
On the other hand, Vietnam has endowed Samsung with fiscal exemptions, preferential tariffs and specific infrastructure adapted to Samsung’s requirements. It is a key company for the country’s economy, and the relationship is completely symbiotic.
The Samsung case, even more particular. Samsung’s relationship with Vietnam goes far beyond the commercial war. Is one that is consolidated since 2008year in which Samsung lands in the country with its first production plant. Almost 20 years later, 50% of its production chain is located in Vietnam, with various production plants and a gigantic R&D center in Hanoi.
Samsung not only manufactures telephone numbers in Vietnam, divisions such as Samsung Display, as well as those related to low -level chips, batteries and more key components of their technological portfolio, are born in Vietnam. It is currently the country that forms its strategic nucleus in supply.
Nor a trace of China. Samsung is the only technological giant that does not manufacture smartphones in China. The company closed his last factories In the territory in 2020, distributing production between Vietnam, India, South Korea, Brazil, Indonesia and Egypt. Samsung’s production chain is extremely diversified, a scenario that protects it quite well in the face of geopolitical changes.
Three months of uncertainty. Samsung has a lot of response capacity to a 10% tariff in Vietnam. Diversification in the supply chain is one of its main allies, and a partial absorption strategy of the tariff added to a slight rise in prices in markets such as the American would not be a special impact.
A separate case would be the return of a tariff greater than 40% to Vietnam, taking into account that half of its production is done there. At the moment, the news of the day is that Trump has focused this tariff war on China, lowering the rest to 10% and paralyzing them for 90 days. Tomorrow, perhaps, the news is different.
Image | Xataka
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