Why Samsung Electronics (SMSN) fell 1.99%
Samsung Electronics (SMSN) fell 1.99% on October 7, 2026 — Trump's 300% tariff threat hits Korea stocks.
What happened
Trump threatened tariffs up to 300% and pressured Korea over US investment; foreign investors sold W20.3 trillion in Korean stocks, including Samsung, as tariff risk hit the broad market—Samsung fell 2%.
Why it moved
Samsung's memory and foundry businesses depend on US capex and open trade; tariff threats raise uncertainty around demand and capex plans, while also weakening the won, all of which compress margin and growth…
Why it matters
Samsung and SK Hynix anchored the Korea Tech rally on AI-chip and HBM demand; tariff shock exposes export exposure and capex risk, deflating the premium valuation the theme had earned.
What would break the thesis
If tariffs are delayed or exempted for semiconductors, or if Korea commits to larger US capex, the hit reverses; if tariffs widen and stick, memory demand, foundry utilization, and valuations face a structural reset.