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US President Donald Trump and Apple CEO Tim Cook at the White House in March.
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US president says he’ll consider Apple CEO’s concerns of competing against Samsung
Apple CEO Tim Cook recently met with US President Donald Trump and complained that US government tariffs on Apple products made in China would make it difficult to compete with Samsung in the country. Trump said that Cook had “made a good case.” Now, all eyes are on whether Trump takes additional measures to protect Apple in China. On Aug. 18, addressing questions from reporters at New Jersey's Morristown Municipal Airport about his Aug.16 meeting with Cook, President Trump said that he "had a very good meeting. [. . .] Tim was talking to me about tariffs." "And, you know, 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. And it’s tough for Apple to pay tariffs if they’re competing with a very good company that’s not," said Trump, repeating, "So, Samsung is not paying tariffs because they’re based in a different location, mostly South Korea, but they’re based in South Korea. And I thought he made a very compelling argument, so I’m thinking about it." Apple's flagship product, the iPhone, is primarily manufactured and produced in China, which is why it has been at the top of the list of companies expected to take a direct hit from the US-China trade war. Although the US government initially decided to impose 10% tariffs on US$300 billion worth of Chinese goods starting Sept. 1, it pushed back the effective date for smartphones and other select categories to Dec. 15. Under this plan, Apple's Chinese-made Apple Watches, AirPods, and other accessories will be subject to tariffs starting Sept. 1, while iPhones, iPads and laptops will be tariffed from Dec. 15. Samsung Electronics' US-bound smartphones are chiefly made in Vietnam and India, and are exempt from tariffs per the WTO's Information Technology Agreement. Responding to Apple's request for the US government not to impose tariffs on Chinese parts used for Apple products, Trump tweeted his refusal: "Make them in the USA, no Tariffs!" But it remains to be seen whether any relief measure will be provided for Apple after Trump's meeting with Cook. One possibility is an exemption for iPhones or other products made in China. There is also speculation that the move is meant to ramp up the pressure on Samsung to invest in the US. In his visit to South Korea last June, Trump met with Samsung Electronics Vice Chairman Lee Jae-yong and other conglomerate chiefs and urged them to increase their US investments. By Hwang Joon-bum, Washington correspondent Please direct comments or questions to [english@hani.co.kr]
