China trade war will help Samsung, Tim Cook tells Trump


Washington, Aug 19 (IANS): US President Donald Trump has praised Apple CEO Tim Cook for "making a good case" that tariffs on China will help Samsung gain more as it is based in South Korea and does not need to pay any tariffs.

In a conversation with reporters, Trump said "he has had a very good meeting with Cook", The Verge reported on Sunday.

"I 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 they're based in South Korea," Trump told the media at a New Jersey airport.

Most of Apple's products are assembled in China and will be subject to an additional 10 per cent import tax later this year.

The ongoing trade-war between the US and China has caused Apple's iPhone production costs to rise as much as 3 per cent because of the new retaliatory tariffs imposed by Beijing, to come into effect from September 1 for products like the Apple Watch and AirPod.

Trump earlier met Cook during a dinner on Friday night, saying that Apple would be spending "vast sums of money in the US".

"It's tough for Apple to pay tariffs if they're competing with a very good company that's not. I said, aHow 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," said Trump.

Samsung has most of its manufacturing base in South Korea and Vietnam.

Apple iPhones would be around $100 more expensive in the US once new 10 per cent tariff on $300 billion in goods imported from China comes into place from September 1.

"iPhone sales in the US, China and other markets could fall by 8 million to 10 million," CBS News reported earlier this month.

Apple XS Max starts at $1,099 and new 10 per cent tariff would mean a roughly $110 hike.

In May, Fortune quoted a Wedbush analyst Dan Ives as telling investors that tariffs on the device's Chinese-made batteries and other components would increase Apple's manufacturing cost by 2 to 3 per cent.

According to Ives, Apple's costs could soar higher if the Trump administration follows through with a plan to add an additional $325 billion in tariffs to Chinese goods. If that happens, iPhones would cost an extra $120 each to produce.

Top Stories


Leave a Comment

Title : China trade war will help Samsung, Tim Cook tells Trump


 
 
 
 

 
You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.


Security Validation

Enter the characters in the image