Trump says Apple's Cook concerned about losing edge to Samsung with tariffs

Published Sun, Aug 18, 2019 · 11:00 PM

[WASHINGTON] President Donald Trump said Apple Inc chief executive officer Tim Cook voiced concerns about chief competitor Samsung Electronics getting an edge because its products, unlike Apple's, won't be subject to tariffs when imported by the US.

Mr Cook and Mr Trump had dinner on Friday night, while the president was at his golf club in Bedminster, New Jersey. Mr Trump described the conversation to reporters as he prepared to travel back to Washington.

The majority of Apple's products are due to be hit with 10 per cent tariffs in the next weeks or months. Levies on the iPhone, iPad, and Apple laptops have been pushed back to Dec 15, but the tariff hit on the Apple Watch, AirPods, and many accessories is still planned for Sept 1.

Mr Trump said Mr Cook made a "good case" about the difficulty in competing with Samsung if Apple products are subject to import tariffs. "I thought he made a very compelling argument."

Apple will be hit by tariffs because it makes the majority of its devices in China before importing them to the US and other parts of the world.

Samsung, however, builds its products across several countries, including Vietnam and South Korea in addition to China. That means their tariff impact will be far less than the impact to Cupertino, California-based Apple.

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

Apple needs to incorporate the cost of tariffs into the cost of goods, while Samsung currently won't, putting Apple at a competitive disadvantage. Samsung is launching its latest device, the Note 10, later this month, while Apple is planning upgrades to the Apple Watch, iPhone, and its computers for later this year.

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