Tim Cook ‘Made a Good Case’ of Tariffs Hurting Apple, Benefiting Samsung

Daniel Fowler
August 19, 2019

"It's tough for Apple to pay tariffs if it's competing with a very good company that's not".

Trump said Cook "made a very compelling argument" over the impact of tariffs on Apple in the context of its competition with Samsung, which doesn't face the same higher costs because its products are made in South Korea.

The 10 percent tariff on approximately $300 billion of Chinese imports is still entering into effect on September 1, but The Office of the United States Trade Representative announced that smartphone and laptop tariffs are delayed until December 15. The latter batch includes iPhones due to launch next month.

Apple chief executive Tim Cook has made a case for easing tariffs that could hurt his company's supply chain to President Donald Trump.

As reported by Bloomberg, Cook met Trump over dinner and discussed his concerns.

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In the meantime, Apple has been lobbying hard to convince the Trump administration that tariffs might lead to a range of unintended consequences.

Unlike Apple, Samsung builds its devices across different countries in addition to China.

Later, the president made a decision to delay the import taxes on phones, laptops, and some other goods, though Apple accessories like AirPods will still get hit next month.

Trump told reporters that Cook made a very compelling argument but that's pretty much all that he was willing to say. The South Korean company also enjoys having no tariffs on products imported from China.

Apple investors over the past few weeks have been particularly wary of looming tariff increases on a range of products imported from China. In short, Apple and its customers will end up paying more because of those tariffs which would make Samsung's smartphones more tempting and more affordable.

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