Apple CEO Tim Cook reportedly warned that the US’ ongoing trade war with China is making it increasingly difficult for the iPhone maker to compete with South Korean rival Samsung, due to the tariffs it is set to face.
According to various reports, US President Donald Trump told reporters of Cook’s concerns, which were expressed by the Apple chief during a meeting between the two on Friday (16 August).
Trump said Cook talked to him about tariffs due to hit Apple from 1 September, because its products are largely made in China and made “a good case”.
He apparently told Trump that Samsung would not be subject to the same issues because they are based in South Korea.
“It’s tough for Apple to pay tariffs if they’re competing with a very good company that’s not… So Samsung is not paying tariffs because they’re based in South Korea… And I thought he made a very compelling argument, so I’m thinking about it,” Trump said.
The meeting between Trump and Cook comes after the US President called for Apple to manufacture more of its products in the US. Apple conducts a lot of research and development in its home market, but makes the majority of its devices elsewhere.
On 1 September, a new round of tariffs on Chinese imports are set to come into effect and raise prices by 10 per cent, which could include Apple’s AirPods and Apple Watch.
MacBooks, iPhones and iPads will be spared, but could included in a new round of tariffs due in December.Subscribe to our daily newsletter Back