Samsung Electronics (SSNLF) on Thursday said that a trade agreement with the U.S., which imposes 15% tariffs on imports from South Korea, helps reduce uncertainty.

South Korea's Samsung Electronics signed a $16.5 billion, eight-year contract to supply semiconductors to a global company, which Elon Musk said was Tesla.,

Samsung Electronics anticipates increased chip orders following a $16.5 billion deal with Tesla, despite reporting its weakest earnings in six quarters. A new U.S. factory in Texas is slated to begin production in 2026.

The agreement comes after other American allies, like Japan, clinched their own deals, partly to moderate President Trump’s tariff threats.

There is no written agreement yet on a trade deal between South Korea and the United States announced by President Donald Trump this week, the Asian nation's trade minister said on Friday. The U.S. tariff on South Korean imports will be 15%,