US Tariffs and AI Export Controls Worry Samsung Despite Record Revenue

Samsung reports record Q1 FY2025 revenue of 79.14 trillion KRW, with operating profit at 6.7 trillion KRW, while warning that proposed U.S. tariffs and expanded AI export controls could dampen demand, raise import costs, and affect pricing of upcoming products. The semiconductor division posted 1.1 trillion KRW profit, down from 2.9 trillion KRW year-over-year, with short-term boosts from client stockpiling ahead of potential tariffs. As many products are manufactured in Vietnam and Mexico, shipments to the U.S. may face higher costs, and HBM offerings could see increased regulatory scrutiny. Samsung plans to launch the Galaxy S25 Edge and next-gen foldables (Z Fold7, Z Flip7), with a tri-fold device rumored but potentially delayed.