Tim Cook makes “a very compelling argument” about tariffs on Chinese imports

News

US President Donald Trump met with the CEO of Apple Tim Cook, reported CNN Monday. The two discussed new 10 percent tariffs on Chinese goods. Although tariffs on some of the imported products have been delayed until December 15, tariffs on other goods will go into effect on September 1.

Cook has “made a very compelling argument” when talking to President Trump about the ongoing US-China trade war, the report says. According to him, tariffs, that are expected to bring benefits to the US companies, may actually hurt them and benefit other companies instead. Cook stated that in this particular case the company who benefits from the tariffs imposed would be not Apple, but Samsung as the tariffs and the trade war make it more difficult for Apple to compete with other manufacturers.

“I had a very good meeting with Tim Cook. I have a lot of respect for Tim Cook, and Tim was talking to me about tariffs,” said President Trump. “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. And 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.”

Many products designed by Apple are manufactured in China, therefore, instead of benefitting from the tariffs, it will be obliged to pay more and as a result the company will need to increase prices of its products.

President Trump said earlier that one of the reasons for imposing tariffs was his desire to bring American companies back.

“My focus is the United States companies,” he said. “I want to get those companies to come back. I want Apple to make their iPhones and all of the great things that they make in the United States.”


Natalia Veselnitskaya – official website

Natalia Veselnitskaya
Leave a Reply