The US President Donald Trump had a discussion with Apple Inc’s Chief Executive Officer Tim Cook regarding the effect of US taxes on Chinese imports and the also the rivalry from the Samsung Electronics Co Ltd., which is a South Korean company. Apple will be hit by new tariffs, due to its products which are majorly manufactured in China, whereas Samsung can able to avoid such kind of hit, because its manufacturing locations are in Indonesia, India, Vietnam, and other countries. Apple’s MacBook laptops and iPhones hopefully will not face additional tariffs until 15th of December, but some other products may get affected which includes Apple Watch, AirPods, and HomePod. The US entered into a new agreement with South Korea last year, in which electronics are free of tariffs. Samsung has many production plants across the globe, in many countries such as China, Vietnam, Brazil, and Indonesia.
Trump advised Apple in order to manufacture its devices in the US. Apple had done lots of research and development in the US and assembles its devices out of the country. All the goods are imported from China to taxes and Trump states that they can produce billions of dollars in revenues for the US Capital from China. But it is not the way tariffs will work.
The government of China and many companies operating in China don’t pay the US tariffs directly. Tariffs mean a tax is applying on the products which are imported and it is paid by the US-registered firms to the US customs at the time of goods enter into the US. Due to the effect of tariffs, investors are concerned about the rising retail prices which will be hampering consumers demand and spending. Trump told that the United States will be going to taxing China until a trade arrangement is secured. He also called himself the Tariff Man, repeating that China needs to pay for US tariffs on its goods.