Samsung’s record quarter belies rising risks from weaponized US trade policy



Analysis Samsung’s record quarter belies rising risks from weaponized US trade policy Tariffs, export controls and AI market fragmentation reveal South Korea’s growing exposure to Washington’s decisions John LeeApril 30, 2025 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON Samsung headquarters in Milan, June 13, 2021 \| Image: Babak Habibi via Unsplash Samsung Electronics’ record-breaking first-quarter (Q1) revenue masks growing concern that South Korea’s largest and most globally integrated firm is now visibly constrained by geopolitical risk, policy-driven export controls and tariff exposure that cannot be hedged through scale or innovation alone. Samsung reported $55.3 billion (79.1 trillion won) in revenue and $4.7 billion (6.7 trillion won) in operating profit in the first quarter, both above expectations on the back of strong sales of the company’s flagship Galaxy smartphones and high-value-added products. But earnings from semiconductors plummeted more than 60% from the previous quarter. The company’s Device Solutions (DS) division, which includes © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01Why South Korea cannot rebalance growth without stronger regional clusters 02Samsung, SK Hynix rejection exposes South Korea’s chip-grid financing problem 03Trump’s Cheongung social media post tests Seoul’s refusal to arm to Ukraine 04Lee Jae Myung risks public trust as South Korea rewires its justice system 05South Korea turns to Central Asia as Iran war tests its energy resilience 06Houthi seizure of Mokha sharpens South Korea’s Hormuz deployment dilemma 07Japan’s stronger yen may cut Korea’s import bill while raising funding costs 08South Korea leans on Europe as Hormuz deployment choices grow narrower

Analysis

Samsung’s record quarter belies rising risks from weaponized US trade policy

Tariffs, export controls and AI market fragmentation reveal South Korea’s growing exposure to Washington’s decisions

John LeeApril 30, 2025

Samsung’s record quarter belies rising risks from weaponized US trade policy

Samsung headquarters in Milan, June 13, 2021 | Image: Babak Habibi via Unsplash

Samsung Electronics’ record-breaking first-quarter (Q1) revenue masks growing concern that South Korea’s largest and most globally integrated firm is now visibly constrained by geopolitical risk, policy-driven export controls and tariff exposure that cannot be hedged through scale or innovation alone.

Samsung reported $55.3 billion (79.1 trillion won) in revenue and $4.7 billion (6.7 trillion won) in operating profit in the first quarter, both above expectations on the back of strong sales of the company’s flagship Galaxy smartphones and high-value-added products.

But earnings from semiconductors plummeted more than 60% from the previous quarter. The company’s Device Solutions (DS) division, which includes

Samsung’s record quarter belies rising risks from weaponized US trade policy

LATEST ANALYSIS

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John Lee