Tim Cook alerts Trump that China tariffs would harm Apple and aid Samsung

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United States President Donald Trump and Apple CEO Tim Cook in 2017.


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United States President Donald Trump’s intensifying trade war with China will make it harder for Apple to take on Samsung. That was the basis of Apple CEO Tim Cook’s message to Trump when the 2 had supper on Friday, according to Trump. Apple would be struck by brand-new tariffs set to enter into impact Sept. 1 due to the fact that its items are mostly made in China, while Samsung would prevent such a hit thanks to its production occurring primarily in Vietnam, India, Indonesia and other nations.

“I had a very good meeting with Tim Cook,” Trump informed press reporters Sunday. “Tim was talking to me about tariffs. And one of the things, and he made a good case, is that Samsung is their number one competitor, and Samsung is not paying tariffs because they’re based in South Korea.”

He continued: “It’s tough for Apple to pay tariffs if they’re competing with a very good company that’s not. I said, ‘How good a competitor?’ He said they are a very good competitor. So Samsung is not paying tariffs because they’re based in a different location, mostly South Korea but they’re based in South Korea. And I thought he made a very compelling argument, so I’m thinking about it.”

A brand-new round of tariffs on Chinese imports is set to enter into impact Sept. 1, raising rates on some electronic devices by 10%. That, according to Reuters, might consist of Apple’s popular AirPods and Apple Watch. Apple’s most rewarding items, like MacBooks, iPads and particularly iPhones, would be spared, however these might be consisted of in a brand-new set of tariffs to be presented on Dec. 15.

Trump, on the other hand, has actually required Apple to construct its gadgets in the United States. Apple does most of its research study and advancement in the United States, however puts together the bulk of its gadgets overseas. This seemed his fixation prior to his conference with Cook on Friday, as he tweeted, “Having dinner tonight with Tim Cook of Apple. They will be spending vast sums of money in the U.S. Great!”

The United States signed a brand-new trade handle South Korea in 2015, in which electronic devices stayed devoid of tariffs. Samsung has production plants all over the world, in nations like Vietnam, Indonesia, Brazil and China. However, it has actually been reducing its reliance on China, shutting down 2 phone production centers in 2018. Just one stays in the nation.