Customers in America have largely been spared the price hikes that Samsung has made for some of its flagship phones overseas. It has held prices at the same level, particularly for the Galaxy S series, over the past few years. Samsung wanted to remain competitive on price in this lucrative market.
Now, though, it may have no other option but to raise prices. Samsung won't be doing that because it wants to increase its profits, rather, it would simply be passing on the impact of the tariffs that have been placed on imports by President Donald Trump.
Tariffs could make your next Samsung Galaxy phone more expensive
If you were to look at where Samsung phones are made, you'll be surprised to see that none of the Samsung Galaxy phones that are sold in America are made in America. They're all imported in the country.
Most Samsung phones sold in America are made in Vietnam where the company has one of its largest manufacturing facilities. Up to 10 million units are made here every month and account for 45% of Samsung's global production capacity.
President Trump has slapped a 46% tariff on products manufactured in Vietnam. What this means is that if a product has an import value of $100, the US will charge a $46 tariff on it, taking the landed cost alone to $146. Once logistics, margins, and other expenses are accounted for, the final price customers pay would be even higher.
Samsung's options here are limited. Either it raises prices or keeps them steady but takes a hit on its profit margins. That could only be barely palatable on higher margin devices like the Galaxy S25 Ultra or the Galaxy Z Fold 6, but would surely force the selling price below cost on mid-range devices like the Galaxy A56.
The company does have a major manufacturing base in India that it could use for smartphone exports to America. Imports from India have been hit with a 26% tariff, which while significant, is certainly lower than Vietnam's 46%.
Samsung would be hoping that the governments of these countries can quickly strike a favorable trade deal with President Trump to bring down the tariffs or else it may need to raise prices, which would likely reduce demand for its new devices, leading to a drop in profitability at a time when it can least afford it.