Samsung shares hit 4-year low amid tariff fears

Samsung Electronics shares plunged to their lowest point in over four years, reflecting growing concerns about potential U.S. tariffs under an incoming Trump administration. The world's leading memory chip manufacturer has become the worst-performing stock among global chipmakers this year, with shares down 34% year-to-date and heading toward their worst annual performance in over two decades.

The decline comes as Samsung lags behind competitors in capitalizing on the artificial intelligence chip boom. Analysts point to Trump's proposed tariffs, including a universal 10% import tariff and a 60% tariff on Chinese goods, as particularly threatening to Samsung due to its significant reliance on Chinese customers.

In contrast, local rival SK Hynix has seen its shares rise by nearly a third this year, benefiting from increased sales of high-end AI server chips to U.S. customers like Nvidia, whose own stock has surged 199%. The divergent performances highlight Samsung's vulnerability to Trump's trade policies.

South Korean President Yoon Suk Yeol recently expressed concern that Trump's threatened tariffs on Chinese imports could prompt Chinese competitors to reduce export prices, potentially undermining Korean chip firms in international markets.

As of early trading, Samsung shares fell 2.1%, reaching 51,700 won - their lowest since June 2020. The decline represents the fourth consecutive session of losses, outpacing the broader KOSPI market's 1.5% fall. Analysts from BNK Investment & Securities and Hyundai Motor Securities warn that the proposed tariffs could significantly reduce demand for electronics products utilizing chips, further impacting Samsung's market position.