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Fears around Trump’s tariffs on Chinese imports have likely impacted Korea’s biggest company, Samsung, whose stocks have been falling since Trump regained the Oval Office.?
The re-election of the former US president Donald Trump has resulted in Korean conglomerate Samsung’s stocks falling sharply. Since the declaration of Trump’s victory, Samsung Electronics’ stocks have plummeted to their lowest value in four years.?
The value of Samsung’s stocks has declined by over 35% year-to-date, reaching a little over 50,000 Korean won ($36) per share. This is the lowest that Samsung’s stock prices have been since the initial wave of market panic onset by COVID-19 related lockdowns in March 2020. It can be seen declining since November 8, just a day after Trump was declared the winner.
The decline is considered to be associated with the 10% tariffs on imports and 60% on imports specifically from China proposed by Trump. Although the tariffs have not been finalized, analysts say they could strain Samsung’s supply chain and significantly increase prices of goods manufactured in China, which could result in low demand.?
Meanwhile, another Korean microchip maker and Samsung’s biggest competitor, SK Hynix, is expected to benefit from Trump’s victory. Reuters says this can be attributed to its lower dependence on Chinese assembly lines.??
The news comes as a shock as Samsung’s stock prices peaked in August after the conglomerate posted a 1458% profit in Q2 2024, following high demand for chips meant for AI applications. During the said period, Samsung’s revenue was reported to have ballooned six-fold.?
Samsung’s likeness of bouncing back from the grim situation rests on the South Korean government’s relations with the Trump administration and their willingness to comply with sanctions on China. Samsung is already likely siding with Trump, and has complied in cutting off sales of advanced semiconductors to Chinese clients, just like TSMC, Chinese news outlet Economic Daily News reported yesterday.?
Last week, Korean president Yoon Suk Yeol expressed unease over Trump’s victory and expressed the tariffs may lead to Chinese manufacturers lowering their prices, which could impact Korean suppliers negatively in markets other than the US. However, another report suggests Samsung’s and LG’s divisions for displays could likely benefit as Trump’s tariffs may hurt other OLED suppliers such as BOE, TCL, and Tianma.
