The CEO of Apple and Donald Trump had dinner on Friday at the in Bedminster at President golf club. Donald Trump says Tim Hook the CEO of Apple made “a very compelling argument” that this whole trade war will hinder Apple’s ability to compete with Samsung.
Trump said, “I have a lot of respect for Tim Hook, we had a very good meeting he was talking about the tariffs. And one of the things that he said made a very good case that Samsung is their number-one competitor, and Samsung is not paying any tariffs because it is a South Korean based company”.
“As it is tough for Apple to pay for Tariffs and compete with Samsung too, I said, ‘How good of a competitor?’ He said they are very good competitors. So Samsung is not paying tariffs because it is based in South Korea. And I thought he made a very good point and I am very impressed.”
The Apple products are mostly assembled in China and will be a subject to 10 percent import tax later this year. This is due to go into effect on September 1st for products like Apple Watch and Airpods, though the iPhone, iPad and MacBook lineup won’t be hit until December 15th after a delay to accommodate the holiday shopping season.
Samsung is safe from the Trump administration’s ongoing war with China, because the company has a more diversified supply chain, with much of its manufacturing located in South Korea and Vietnam. Apple is said to be looking at moving its manufacturing elsewhere.