Trump Says Apple CEO Tim Cook Made 'Very Compelling Argument' About Tariffs

Apple Inc. CEO Tim Cook again told president Donald Trump his new 10% tariffs on Chinese goods, which the latter postponed until Dec. 15, will hurt Apple while boosting its smartphone rivals, especially Samsung Electronics Co. Ltd.

Cook and Trump shared a widely covered dinner on Aug.16 where both men exchanged views on an array of topics but reserved most of the conversation on Trump’s trade war against China and the harm it’s inflicting on Apple.

Cook again told Trump it will be hard for Apple to pay tariffs on its Chinese-assembled products since many of its competitors don’t have to pay the same level of tariffs. He referred specifically to Samsung, the world’s largest maker of mobile phones, whose manufacturing facilities are mostly located in South Korea which Trump isn’t engaged in a trade war.

On Sunday, Trump said Cook made a “good case” it will be difficult for Apple to pay tariffs when Samsung doesn’t face the same problem.

“I thought he made a very compelling argument,” said Trump.

On Aug. 13, Trump postponed the new 10% tariffs on some consumer items (including smartphones and video games) until Dec. 15.

The United States Trade Representative office (USTR) said the delay affects electronics (including mobile phones) laptops and video game console, some clothing products and shoes and “certain toys.” Other products on the list include footwear and apparel, food and kitchen items, numerous chemicals, fireworks, baby products and sports equipment.

Products in the categories exempt from the tariffs are critical to the U.S. consumer market, especially during the huge Christmas shopping season.

Trump said he postponed the tariffs that would have hit during the Christmas shopping season “in case it had an impact on shopping.” He claims the delay will “help a lot of people.”

On Aug. 1, Trump announced 10% tariffs will be levied on Sept. 1 on the remaining $300 billion worth of Chinese imports not hit by new U.S. tariffs.

Apple’s position on the deleterious effects of Trump’s trade war was delineated in a letter Cook sent to U.S. trade representative Robert Lighthizer in late June. In this letter, Apple urged Trump to drop his tariff plan to levy duties on $300 billion worth of Chinese products if he can’t reach a trade deal.

Cook said Trump’s new tariffs will "tilt the playing field" in favor of its global rivals, among which are many Chinese companies. He said more tariffs will hurt Apple’s "global competitiveness.”

The letter said Trump’s proposed tariffs will hit Apple’s major products, including iPhone, iPads and Airpods. Trump’s new tariffs will also make it more costly to repair Apple devices in the U.S. by making imported parts more expensive.

"We urge the U.S. government not to impose tariffs on these products," said Cook.

Apple said its Chinese competitors such as ZTE Corporation and Huawei Technologies Co. Ltd. don’t have a "significant presence" in the U.S. market and won’t be impacted by Trump’s new duties.

"A U.S. tariff would, therefore, tilt the playing field in favour of our global competitors.”

In sending this letter, Apple joined a large number of companies pushing Trump to abandon plans for more tariffs on Chinese goods. They cite risks to their business and consumers from higher tariffs.