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Samsung Unveils Flexible Supply Strategy to Counter US Tariff Uncertainty

The company’s scenario-based system allows it to reallocate US-bound smartphone production across global plants, including India’s Greater Noida facility.

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Overview

  • Samsung’s mobile experience division is primed to reroute US shipments through its global factories to quickly adapt to final tariff decisions, COO Won-Joon Choi said.
  • Its Greater Noida plant in India is already manufacturing smartphones destined for the US as a hedge against looming duties.
  • The Trump administration’s recent trade deal imposes a 20% duty on Vietnam exports from July 3 and plans to levy 25% tariffs on South Korean imports starting August 1.
  • A built-in rapid-response mechanism lets Samsung shift production lines among India, Vietnam and South Korea based on the administration’s final tariff rulings.
  • To bolster resilience, the company is diversifying its rare earth metal supply by sourcing from multiple suppliers across different countries.