Tim Cook Makes a Strong Case Against Tariffs at Dinner with the President
President Donald Trump and Apple CEO Tim Cook were talking tariffs over dinner on Friday night at the president’s golf club in Bedminster, NJ. Cook expressed his concerns about how U.S. tariffs on Chinese goods could put Apple at an extreme disadvantage against its biggest competitor: Samsung. Since much of Samsung’s products are manufactured in South Korea and Vietnam, it would not be subject to the same tariffs as Chinese-assembled Apple products.
Cook, rightfully anxious about the impact tariffs will have on his business, laid it all out on the table for the president, and it seems he may have listened.
NEW: Pres. Trump said he met with Apple CEO Tim Cook in Bedminster, adding that Cook "made a very compelling argument" that tariffs are making it hard for Apple to compete with companies like Samsung. "I'm thinking about it." https://t.co/TVq7yKJSle pic.twitter.com/LktWUkkJdt
— ABC News (@ABC) August 18, 2019
Trump said Cook made a “very compelling argument” and admitted that “it’s tough for Apple to pay tariffs if it’s competing with a very good company that’s not [paying tariffs].”
The impending tariffs on $300 billion worth of Chinese goods are expected to make an initial rollout on Sept. 1. The first round will affect smart watches, fitness trackers, smart speakers, and Bluetooth headphones, meaning AirPods, Apple Watches, and HomePods will all face a 10 percent import tax. Next on the chopping block will be iPhones, iPads, and MacBooks, set to be hit with the import tax on Dec. 15 in order to accommodate the holiday shopping season.
Ahead of the dinner, Trump tweeted that Apple “will be spending vast sums of money in the U.S.,” though he did not elaborate on any details beyond that.
Having dinner tonight with Tim Cook of Apple. They will be spending vast sums of money in the U.S. Great!
— Donald J. Trump (@realDonaldTrump) August 16, 2019
But wherever the discussion between the Apple CEO and the President led to on Friday night, Trump says he’s “thinking about it,” which sounds like a good thing?