No - The location is not determined via GPS. The Smarttag2 can connect to other Samsung devices (own and third-party) in the vicinity via SmartThings and then be found.

Tracking takes place via BLE (Bluetooth Low Energy) within a radius of 120 metres. Beyond the 120 metre radius, the signals from the tags can also be picked up by other Samsung devices in the vicinity. The owner then receives a notification with the location data of the tracking device

It is not connected to the phone's GPS and has its own location system, which means it can be located at any distance if it is lost. The BLE is useful for the last few metres and for making it ring.

Fortunately, the Smarttag is not connected to GPS. That would be stupid, as GPS is power-hungry.
The Smarttag is detected by neighbouring mobile phones via Bluetooth and forwarded to Samsung without the mobile phone user being aware of it.
The location coordinates can then be retrieved from your own mobile via an app.
I leave one in my car. That way I always know where it is.

No

No GPS and unlike Apple's iTag, these are no good. I bought an Android as a second mobile phone and these smart tags, which are in the same place as the iTags, but they can't be found even though there is a lot of public traffic.