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Apple boss Tim Cook makes case for China tariff break to Trump

Apple boss Tim Cook has asked Trump to reconsider some of his tariffs - AFP
Apple boss Tim Cook has asked Trump to reconsider some of his tariffs - AFP

Apple chief executive Tim Cook has made a case for easing tariffs that could hurt his company's supply chain to President Donald Trump.

The US President said Cook had “made a good case” that tariffs could hit Apple, while failing to dampen rival South Korean rival Samsung, the world's biggest smartphone maker, whose devices would not be affected.

Most of Apple's iPhone models, its MacBook laptops and Apple Watch are all built in China. Samsung, on the other hand, assembles many of is devices in factories in Vietnam and India, which are not subject to new levies.

Apple's iPhone and its MacBook laptops are not subject to the initial round of tariffs, other devices, such as the Apple Watch, its AirPod headphones and HomePod smart speaker could all be affected by tariffs that come into force from September of up to 10pc on electronic goods.

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Its iPhone and MacBook could still be hit with levies from December, but were spared from the initial hit following a last minute decision by the US last week. The U-turn saw Apple's share price rise almost 5pc as it gears up for its major new iPhone XI launch in September.

Following a dinner with the Apple boss, President Trump said: “I had a very good meeting with Tim Cook. Tim was talking to me about tariffs. One of the things, and he made a good case, is that Samsung is their number one competitor, and Samsung is not paying tariffs because they're based in South Korea.

“It's tough for Apple to pay tariffs if they're competing with a very good company that's not... I thought he made a very compelling argument, so I'm thinking about.”

The US secured a new trade deal with South Korean last September.

The US Government is currently expected to unleash tariffs on $300bn worth of Chinese goods from September as part of an ongoing trade dispute.

Apple has repeatedly cautioned the Trump administration on tariffs on consumer electronics, suggesting it could reduce its contribution to the US economy and complicate its supply chain.

The company also requested an exemption for parts of its Mac Pro desktop computer, shortly after it was revealed Apple planned to stop assembly of the device in the US and move it to China. Trump slammed the demand. He tweeted: “Make them in the USA, no Tariffs!”