Tariff Changes May Boost Korean TV Brands in US Market

Omdia's latest research report highlights significant shifts in the U.S. television market due to escalating geopolitical tensions and changes in tariff policies. The study suggests that while U.S. domestic TV brands are expected to grow substantially by 2025, Korean brands like Samsung and LG are poised to regain lost ground from Chinese competitors such as Hisense and TCL. This trend is primarily driven by the fact that Samsung and LG have extensive manufacturing capabilities in Mexico, allowing them to sidestep the high tariffs imposed on Chinese imports. In April 2025, the U.S. announced tariffs of up to 145% on televisions imported from China, along with additional levies on products from Vietnam and Thailand. These new tariffs have had a profound impact on supply chain strategies across the industry, leading many manufacturers to reconsider their production locations. According to the United States-Mexico-Canada Agreement (USMCA), televisions produced in Mexico that meet certain origin certification and regional value content requirements (at least 60%) can still enter the U.S. market tariff-free. As a result, Mexico has solidified its position as a crucial hub for television manufacturing, with 65% of U.S.-bound TVs now originating from there. The tariffs have forced Hisense and TCL to pause their expansion plans, particularly in the small to medium-sized (up to 50 inches) television market. Both companies had ambitious goals to expand globally and were investing in new facilities in Vietnam, but the implementation of new tariffs has rendered these projects less viable in the short term. In contrast, Samsung and LG have leveraged their existing infrastructure in Mexico to ramp up production, maintaining and even enhancing their presence in the U.S. market. Samsung and LG currently dominate the large-sized TV segment (65 inches to 85/86 inches), where they offer high-end models with advanced features. Meanwhile, Chinese brands have been more prevalent in the lower-cost, smaller-sized TV market. However, as the tariffs increase the cost of producing cheaper TVs, the price advantage of Chinese brands diminishes, making it easier for Samsung and LG to compete in this sector. Other brands that rely heavily on Asian supply chains, such as Vizio and Walmart's own brand Onn, are also experiencing challenges. Onn had initially planned to assemble some of its TVs in the U.S. to mitigate the effects of tariffs, but the cost efficiency of Mexican-produced units has made this strategy less attractive. As a result, Samsung and LG's robust operations in Mexico will likely continue to give them a competitive edge. The overall response from the display industry to these policy changes has been cautious. Most companies are hesitant to make immediate large-scale adjustments to their production lines, preferring to wait for greater clarity and stability in tariff regulations. Despite this cautious approach, industry experts predict that the tariff changes will significantly alter the competitive landscape of the U.S. TV market. According to Deborah Yang, Omdia's Director of Display Panels and Supply Chain Research, "Mexico's supply chain resources are becoming a key competitive advantage in the U.S. TV market. Samsung and LG are excelling in utilizing these resources, expanding their production capacity, and maintaining profit margins in a volatile tariff environment." She further notes that while the profit margins in the TV industry are relatively low, Samsung and LG's ability to add value through their proprietary operating systems, Tizen and webOS, respectively, gives them an edge in market competition. Industry insiders concur that brands with flexible supply chains and local manufacturing capabilities will thrive in the face of these changes. Conversely, those relying on overseas production, particularly from Asia, face significant uncertainty. The strategic advantage of Mexican production not only shields companies from high tariffs but also enables quicker adaptation to market demands and regulatory changes. Omdia, a subsidiary of Informa TechTarget, Inc. (NASDAQ: TTGT), is a renowned research and consulting firm focused on the technology sector. Known for its in-depth market analysis and actionable insights, Omdia provides valuable guidance to businesses navigating the complex technological landscape. Their expertise in display panels and supply chain dynamics makes their forecasts highly reliable for industry stakeholders. In summary, the implementation of new tariffs on Chinese, Vietnamese, and Thai TV imports has catalyzed a significant shift in the U.S. television market. Brands like Samsung and LG, with their established manufacturing presence in Mexico, are well-positioned to capitalize on this opportunity. Meanwhile, Chinese brands and other companies dependent on Asian supply chains, such as Vizio and Onn, face increasing competitive pressures. The industry's cautious reaction to these changes underscores the critical importance of flexible and localized production strategies. The future of the U.S. TV market will likely see Korean brands extending their dominance, driven by their strategic advantages in manufacturing and value-added innovations.