Samsung states that its TV division will be less impacted by US tariffs thanks to production in Mexico.

Samsung Electronics’ new television venture is anticipated to be less impacted by U.S. tariffs compared to competitors, as an executive mentioned on Monday that the majority of its TVs sold in North America are manufactured in Mexico.

However, Samsung, the leading TV manufacturer globally, will keep an eye on the evolving U.S. tariff policies. Based on these tariffs, it intends to adjust its production distribution among approximately 10 production sites worldwide, stated Yong Seok-woo, the president of Samsung’s visual display division.

Mexico mostly avoided Trump’s new 10% global baseline tariff and increased “reciprocal tariffs” for several trading partners on Wednesday. In contrast, China will face a 34% U.S. tariff, in addition to the 20% already imposed earlier this year, resulting in total new levies of 54%.

Samsung is encountering growing rivalry in the television market from Chinese firms such as TCL and Hisense . Samsung is preparing for the effects of U.S. tariffs on its key sectors like memory chips and smartphones, which may experience lower demand. On Monday, Samsung Electronics shares fell 4.3% due to a wider market decline caused by concerns over U.S. tariffs.