by Key Takeaways
- Since the start of 2024, the stock price of Samsung Electronics has dropped by 35%.
- There has been a noticeable downturn since Donald Trump’s re-election.
- Trump’s proposed 60% tariffs on Chinese goods are blamed by analysts for these losses, which might have a big effect on Samsung.
Samsung, the largest corporation in Korea, has probably been affected by concerns about Trump’s tariffs on Chinese imports, as evidenced by the decline in its shares since Trump reclaimed the presidency.
The stocks of the Korean corporation Samsung have plummeted since former US President Donald Trump was re-elected. Samsung Electronics’ stock has fallen to its lowest level in four years since the announcement of Trump’s triumph.
Samsung’s stock is now worth little over 50,000 Korean won ($36) a share, a decrease of more than 35% so far this year. Since the first wave of market panic caused by COVID-19-related lockdowns in March 2020, Samsung’s stock prices have never been lower. Since November 8, a day after Trump was proclaimed the victor, it has been showing signs of decline.
The drop is thought to be related to Trump’s planned 10% import duty and 60% import tariff on goods coming from China in particular. Analysts warn that even if the tariffs are not yet approved, they may put pressure on Samsung’s supply chain and raise the cost of Chinese-made items sharply, which may lead to a decline in demand.
Meanwhile, Trump’s win is anticipated to help SK Hynix, a Korean semiconductor manufacturer and Samsung’s main rival. According to Reuters, this is because it is less reliant on Chinese assembly lines.
The revelation is unexpected because Samsung’s stock prices soared in August after the company reported a 1458% profit in the second quarter of 2024, which was fueled by strong demand for chips used in artificial intelligence applications. Samsung’s revenue was believed to have increased sixfold during that time.
The South Korean government’s relationship with the Trump administration and their readiness to abide by China sanctions will determine if Samsung recovers from the dire circumstances. Like TSMC, Samsung has reportedly already sided with Trump by ceasing to provide sophisticated semiconductors to Chinese customers, according to a story published yesterday by the Chinese news outlet Economic Daily News.
Yoon Suk Yeol, the president of Korea, voiced concern over Trump’s win last week and said that the tariffs would cause Chinese producers to cut their costs, which would hurt Korean suppliers in markets outside of the US. However, according to another report, Trump’s tariffs may impact other OLED suppliers like BOE, TCL, and Tianma, which would certainly boost Samsung’s and LG’s display divisions.
