AI chip restrictions and tariffs weigh on Samsung’s global strategy

Samsung has warned that rising US tariffs could dampen global demand for its electronics, including smartphones and semiconductors.

Despite reporting record quarterly revenue of £41.6 billion and a modest profit rise driven by strong phone and chip sales, the company expressed concerns about the uncertain trade environment.

Executives cited possible risks to sales in the second half of 2025 due to escalating tariff tensions.

While some clients have accelerated orders to avoid incoming levies, Samsung said this may create a sales lull later in the year.

Delayed tariffs affecting countries like South Korea and Vietnam , where Samsung manufactures key components, are expected to take effect in July. US restrictions on AI chip sales to China are also weighing on the company’s outlook.

Samsung refrained from providing financial guidance for the next quarter, citing unpredictable global trade dynamics.

As tariff uncertainty continues, major tech companies like Apple are also reassessing supply chains, with many shifting chip production out of China in anticipation of further disruptions.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot !