Trump era put Samsung in a difficult situation, its shares fell to the lowest level in the last four years
After the elections in the USA, there are different effects in the technology world, just like in the crypto sector. Korean technology giant Samsung seems to have experienced the biggest impact of these effects.
In addition to the new policies and new customs tariffs implemented by the Trump administration after the election, problems with artificial intelligence chips caused Samsung Electronics’ shares to reach their lowest level in four years.
Samsung shares have lost 34% of their value for the year and are at risk of their worst annual performance. This decline was further exacerbated by Trump’s threat of 10% general tariffs and 60% special tariffs on Chinese imports. These tariffs could negatively impact Samsung’s sales by reducing demand for electronic products.
Samsung’s rival, SK Hynix, was less affected by Trump policies and increased by 32% for the year. SK Hynix has increased sales of its high-performance AI server chips, particularly to American customers such as Nvidia.
Trump’s tariffs have further highlighted Samsung’s dependence on Chinese customers. This has become even more challenging at a time when Samsung has put itself in an advantageous position over its local rival SK Hynix. Trump’s threat to Chinese imports led Chinese competitors to lower their prices, weakening Samsung’s competitiveness in the international market.
A WORRIED VIEW FROM SOUTH KOREA
In recent weeks, South Korean President Yoon Suk Yeol has stated that Trump’s high tariffs on Chinese imports will cause Chinese rivals to lower prices, weakening the competitiveness of South Korean chip companies in the international market.
Samsung shares ended a four-day slide as the most valuable stock on the South Korean stock exchange, falling 2.1% at 0126 GMT. SK Hynix shares increased by 2% after falling for two consecutive days.
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