TV makers are responding to Donald Trump’s newly announced reciprocal tariffs by accelerating production and front-loading shipments, especially into the U.S. market, to minimize cost exposure.
Television brands such as Samsung, LG, TCL, and Hisense significantly boosted their North American shipments in late 2024, anticipating a 25 percent tariff increase on imports from Mexico — although those fears eased somewhat when products compliant with the USMCA were exempted.
Still, the uncertainty and temporary tariff grace period, including a 90-day delay and a temporary reduction of Vietnam’s tariff rate from 46 percent to 10 percent, prompted a rush in imports and led to a 6.1 percent year-over-year shipment increase in Q1 2025, TrendForce said in its report.
Despite this short-term gain, the longer-term impact of tariffs is expected to be inflationary, with higher retail prices in the U.S. weakening consumer spending and contributing to a forecasted 0.7 percent drop in global TV shipments for 2025.
Television brands without production facilities in Mexico risk losing competitiveness if they can’t localize supply chains in time, potentially resulting in reduced promotions, lower sales, and declining market share in the second half of the year.
On the product strategy front, Chinese brands are doubling down on Mini LED TVs, leveraging trade-in subsidies and energy-efficiency standards to drive volume. TCL and Hisense are set to push Mini LED shipments up 50 percent to 11.56 million units, capturing a dominant 64 percent market share in this segment.
OLED TVs, while seeing moderate growth driven by Samsung’s 2.5 million unit target, remain niche due to high prices, limited Chinese support, and production constraints, with total shipments expected to stay between 6.5 and 7 million units in the mid-to-long term.
The combination of cost-driven supply shifts, strategic product positioning, and tariff uncertainty paints a mixed outlook for the TV industry in 2025, with early-year momentum likely giving way to a sluggish peak season.
TelecomLead.com News Desk
