The U.S. television market may be on the brink of significant realignment due to evolving tariff structures that impact how and where TVs are manufactured, Omdia reports.
According to the market research firm that tracks the TV market, leading U.S. TV brands were set for aggressive growth this year, but geopolitical tensions and tariffs are forcing companies to abandon Chinese manufacturing facilities or face steep import prices up to 145%.
Mexico-based TVs Will Be All the Rage
Many TV manufacturers like South Korea-based Samsung and LG have already shifted a lot of manufacturing to Mexico, and the country remains a popular destination of manufacturing due to what Omdia calls “favorable tariff exemptions under the United States-Mexico-Canada Agreement (USMCA).” These shifting dynamics will benefit LG and Samsung to the detriment of U.S. brands as well as Chinese brands like Hisense and TCL, which have put manufacturing investments in Vietnam on hold.
Now, TV brands with significant Mexican production will likely gain market share as they are better able to keep prices low, Omdia suggests:
The April 2025 tariff announcements in spanning up to 145% tariffs on Chinese imports and additional tariffs on Vietnam and Thailand have caused severe disruptions in supply chain strategies across the US TV industry. While the US TV market was somewhat shielded by President Trump’s reciprocal tariff policies due to production shifts to Mexico since 2019, the latest moves have intensified the pressure. Mexico’s favorable tariff exemptions under the United States-Mexico-Canada Agreement (USMCA) continue to benefit TV makers, as long as they meet the required certificate of origin and at least 60% regional value content criteria. As a result, TV makers reconsidering moving production to Southeast Asia are now retaining operations in Mexico with 65% of all TVs sold in the US now coming from there.
What Will TVs Cost If the Tariffs Aren’t Rescinded?
According to an Omdia blog from Principal Analyst Kelly Lee, the shift began around 2019 when higher tariffs on Chinese-made TVs and growing demand for larger screen sizes made Mexico a more viable location for U.S.-bound TV assembly. TVs 65 inches and larger are not only more expensive to ship from Asia but also benefit from the 0% tariff advantage under the USMCA agreement when assembled in Mexico.
Omdia’s cost simulations show stark differences in profitability based on where TVs are built. For a standard 65-inch 4K 60Hz LCD TV at an average selling price of $427 margins vary based on tariff levels. With China now facing up to 156.4% tariffs on 65″ 4K TVs, and Vietnam facing increases up to 49.9%, Mexico remains the most cost-effective source of U.S.-bound TVs—requiring an average selling price of just $541.60 to maintain a 30% margin. In comparison, Chinese-assembled TVs would need to sell for as much as $1,395.30.
South Korean brands, already dominant in Mexican production, are positioned to gain market share as Chinese brands like TCL and Hisense face price hikes or costly supply chain shifts. Integrators should expect more stable pricing and availability from Korean brands, while value brands may become less competitive in the U.S. market through 2025.
U.S. brands such as Vizio and Onn, meanwhile, could lose ground, as they have limited U.S. production capacity and will have to rely on Asian sourcing, Omdia reports.
These major shifts could also give Samsung and LG an opportunity to better compete in the low-cost market as other brands will have a hard time keeping TVs as affordable as they have historically been. Omdia says Samsung and LG can also leverage their respective smart TV operating systems Tizen and webOS to provide additional value to those low-margin low-cost TVs.
In a statement, Deborah Yang, chief analyst of Omdia’s display research practice, said Mexican production is becoming vital in the TV business.
“Mexico’s supply chain resources are becoming a key differentiator in the US market. Samsung and LG are best positioned to capitalize on these resources, scale production, and protect margins amidst volatile tariff conditions,” Yang said.
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