Here is why relocating Apple’s supply chain from China makes business sense.
U.S. President Donald Trump disclosed he has had a discussion with Apple Inc’s Chief Executive Officer Tim Cook on the impact of U.S. tariffs on Chinese imports as well as competition faced by Apple from South Korea’s Samsung Electronics Co Ltd.
Cook “made a good case” of U.S. tariffs hurting Apple Inc’s products since the products of its competitors, including those from Samsung Electronics are not subject to similar tariffs.
Incidentally, in September 2018, the U.S. and South Korea had struck a trade agreement.
Tariffs on an additional $300 billion worth of Chinese goods, including consumer electronics, are scheduled to go into effect in two stages on September 1 and December 15.
“I thought he made a very compelling argument, so I’m thinking about it,” said Trump.
Following Trump’s comments U.S. stock futures rose slightly.
Trump has also tweeted that his administration was “doing very well with China.”
Although Apple’s MacBook laptops and iPhones would not face the additional tariffs until December 15, however its other products, including its Apple Watch, AirPods, and HomePod, would be subject to tariffs which will come into effect on September 1.