President Donald Trump says Apple CEO Tim Cook âmade a very compelling argumentâ that tariffs on China will hamper Appleâs ability to compete with Samsung. The pair had dinner on Friday night at the presidentâs golf club in Bedminster, New Jersey, and Trump described the conversation to reporters from publications including Bloomberg, CNBC, and Fox News on the way back to Washington.
âI had a very good meeting with Tim Cook,â Trump reportedly said. âI have a lot of respect for Tim Cook, and 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 theyâre based in South Korea.â
âItâs tough for Apple to pay tariffs if theyâre competing with a very good company thatâs not. I said, âHow good a competitor?â He said theyâre a very good competitor ... I thought he made a very compelling argument, so Iâm thinking about it.â
Most of Appleâs products are assembled in China and will be subject to an additional 10 percent import tax later this year. This is due to go into effect on September 1st for products like the Apple Watch and AirPods, though the iPhone, iPad, and MacBook lineup wonât be hit until December 15th after a delay to accommodate the holiday shopping season.
Samsung has a more diversified supply chain, with much of its manufacturing located in South Korea and Vietnam. As such, the company wonât be hit as hard by the Trump administrationâs ongoing trade war with China. Apple is said to be looking at moving more of its manufacturing elsewhere.
Trump gave advance word of the dinner with Cook on Twitter Friday evening, saying Apple âwill be spending vast sums of money in the US. Great!â though he doesnât appear to have mentioned any details of further US investment in his comments to reporters.
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