Apple CEO Tim Cook Optimistic Of US-China Trade War, Believes Deal Happening Soon

Apple CEO Tim Cook has said he is optimistic that the U.S and China would settle their trade war amicably.

Cook’s comments came during Apple's fourth-quarter earnings call Wednesday and noted the positions of both sides have softened.

“My view is very positive in terms of how things are going,” the Apple Chief told analysts.

The tone has changed significantly and it was in the best interest for both to get to an agreement that may initially do not solve everything but solve some things and offer a better place "than where we're at and I'm hopeful that that's where we're headed.”

Apple is among a slew of American companies hurt by Trump's tariffs that kicked in during September, with a 15 percent levy on products imported from China.

The iPhone maker was forced to pay tariffs on many products as many components of Apple products originate in China.

In August, Cook in a presentation argued that the trade war has been helping non-American competitors of Apple including Korea’s Samsung, the maker of smartphone Samsung Galaxy S9.

China tariffs on Apple products

Apple is currently paying tariffs on Apple Watch, Apple AirPods, HomePod, and Beats headphones. Apple iPhone may face China tariffs in case the December tariffs go ahead.

Cook said the positive view on the trade war front has been “factored in our guidance as well.”

Cook’s optimism is rational as both the U.S. and China are moving towards an interim trade deal and end the cascading tariff escalations.

Reports also said China wanted further U.S. tariffs to stop on smartphones, laptops, and toys and call off the tariff hike announced for December.

Tim Cook despite being a Trump critic on migrants’ issues, maintains good ties with Trump. Some reports suggest Cook’s meetings with the president and his cordial ties with Trump’s family members such as Ivanka Trump and Jared Kushner.

Trump may cut some China tariffs under the trade deal

Meanwhile, Trump news on the China trade deal said the President might take back some tariffs on Chinese imports to make the Phase one trade deal work as China is adamant about not inking any deal if punitive tariffs remain in place, per Bloomberg.

Departing from the conventional picture of Trump as targeting China via trade war, Keyu Jin, associate professor of economics at the London School of Economics said Trump seems to be doing a service to China by splitting his allies which would have ganged up against China.

Noting that Trump is fighting an “all-front” trade war which is not a bad thing for China, professor Jin told CNBC that Washington’s trade disputes with multiple countries have stopped nations from aligning against China under Trump’s leadership.

“If there were not such a strong alliance with Europe, which is what China’s more concerned about — everyone ganging up against China,” Jin said. For China that makes Trump the least bad option, the professor quipped.