Published: Tue, August 20, 2019
Money | By Ethel Goodwin

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

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

The United States and China are locked in a trade war over USA demands that China change its policies on intellectual property protection, technology transfers, industrial subsidies and other trade barriers. Such fees would hit Apple much harder than competitor Samsung, as Samsung does much of its manufacturing in South Korea, giving the South Korean electronics firm a pricing edge over Apple in the U.S., Cook told Trump.

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

"I thought he made a very compelling argument, so I'm thinking about it", he told reporters. When a government imposes tariffs on products, companies nearly always push the cost of those tariffs onto the consumer. This would include virtually all Apple products. Tariffs are usually bad for American consumers and the economy.

The original timing of the new import duties had caused concerns over their impact on the Christmas shopping season. He claims the delay will "help a lot of people". Tariffs on an additional $300 billion worth of Chinese goods, including consumer electronics, are scheduled to go into effect in two stages on September 1 and December 15.

Despite trade wars and increased tariffs, USA -bound water shipments were up in July for the third time in the last four months. In this letter, Apple urged Trump to drop his tariff plan to levy duties on $300 billion worth of Chinese products if he can't reach a trade deal. I said, "How good a competitor?" More specifically, the new tariffs would affect products like the iPhone, iPad, Macs, as well as Apple Watches, AirPods, and other accessories.

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. Apple is looking to stop the USA administration from placing import tariffs on mobile phones imported from China and argued the tariffs could favour its rival Samsung.

United States stock futures rose after Trump's comments.

USA multinational General Mills has announced its intention of reducing the use of synthetic pesticides on supplier farms.

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