Post heated discussions on what the US and China Trade war is doing to both of the economies, right before another set of tariffs came in, Tim Cook had a talk with Donald Trump.
By the looks of it, Donald Trump seems to find Cook’s, Apple INC’s CEO’s, thoughts, “compelling” and he is thinking about Cook’s words. Further, he adds, that the tariffs have had an effect on Apple, and the same effect has not been faced by Samsung, the South Korean company.
In an interview, Trump spoke about how the tariffs had affected Apple but Samsung did not face much of such hurdles because most of the manufacturing the company did was in South Korea.
Furthermore, the President issued a stern warning against China, and stated that the trade war may never end should China suppress the demonstrators in Hong Kong. Additionally, by the looks of it, as per Trump’s interview, it appears that more tariffs are to follow. However, for now, the US president states that major tariffs have been shifted and won’t be levied for the next three months.
Among the shifted tariffs were the new ones that were to be levied, and would have affected Apple’s business. However, for now, there is nothing to worry about.
In May, the trade war between the two countries escalated when the US increased the 10% tariffs to 25% on $200 billion Chinese imports. China was not the only one to get huge tariffs, the US nixed Canada and Mexico on steel and aluminum tariffs. In retaliation to the increasing number of tariffs against China, the country increased the tariffs against the US by more than 15%.
As per Trump’s 18th August’s tweet, things with China may be looking good. Although he took a tougher stance on an interview, lets see how this pans out.