Trade protectionism is like US cutting its own throat
U.S. President Donald Trump said Sunday that Apple Inc. CEO Tim Cook had voiced concerns about Samsung Electronics getting an edge because the Korean company's products won't be subject to tariffs when exported to America.
"I thought he made a very compelling argument," the U.S. president told reporters.
Three days later, he praised Cook as a "great executive" because he calls him directly, while others don't. "Others go out and hire very expensive consultants. Tim Cook calls Donald Trump directly," Trump said.
The Trump administration, which is now engaged in a trade war with China, plans to slap additional import duties of 10 percent on mobile phones produced in and imported from China, starting in December. Apple's iPhone, iPod and laptops manufactured in China will be subject to the stiffer tariffs. Samsung Electronics makes its Galaxy models in other countries, such as at home and Vietnam in addition to China, and will be affected far less severely.
As it stands, Cook argued that Trump's retaliatory tariffs on made-in-China products would give a sharp competitive edge to Apple's chief competitor, Samsung, an allegation that seemed to have the U.S. leader's ear.
Most experts had long anticipated that the Trump administration's dropping of tariff bombs on goods made in China would hit many U.S. companies, with manufacturing facilities in what was once the world's manufacturing plant, hard. Economists used to warn that the move would be like the U.S. cutting its own throat.
In September last year, when the Trump administration first hinted at levying additional duties on China-made iPhones, CEO Cook also pointed out that the move would inflict damage on American consumers. At the time, Trump hit back, saying that U.S. companies should relocate their manufacturing bases back to America if they wanted to avoid the tariffs.
The U.S. leader is now showing a very different response to a similar complaint this time around, after Apple's top manager cited its competitive comparison with Samsung as the reason.
It is not easy to predict what specific steps President Trump will take to make up for the weakened price competitiveness of U.S. companies. If his administration moves to exempt tariffs on particular products made by U.S. firms in China for this purpose, however, Washington will hardly be able to avoid criticism over yet another unfair trade practice.
U.S. President Donald Trump said Sunday that Apple Inc. CEO Tim Cook had voiced concerns about Samsung Electronics getting an edge because the Korean company's products won't be subject to tariffs when exported to America.
"I thought he made a very compelling argument," the U.S. president told reporters.
Three days later, he praised Cook as a "great executive" because he calls him directly, while others don't. "Others go out and hire very expensive consultants. Tim Cook calls Donald Trump directly," Trump said.
The Trump administration, which is now engaged in a trade war with China, plans to slap additional import duties of 10 percent on mobile phones produced in and imported from China, starting in December. Apple's iPhone, iPod and laptops manufactured in China will be subject to the stiffer tariffs. Samsung Electronics makes its Galaxy models in other countries, such as at home and Vietnam in addition to China, and will be affected far less severely.
As it stands, Cook argued that Trump's retaliatory tariffs on made-in-China products would give a sharp competitive edge to Apple's chief competitor, Samsung, an allegation that seemed to have the U.S. leader's ear.
Most experts had long anticipated that the Trump administration's dropping of tariff bombs on goods made in China would hit many U.S. companies, with manufacturing facilities in what was once the world's manufacturing plant, hard. Economists used to warn that the move would be like the U.S. cutting its own throat.
In September last year, when the Trump administration first hinted at levying additional duties on China-made iPhones, CEO Cook also pointed out that the move would inflict damage on American consumers. At the time, Trump hit back, saying that U.S. companies should relocate their manufacturing bases back to America if they wanted to avoid the tariffs.
The U.S. leader is now showing a very different response to a similar complaint this time around, after Apple's top manager cited its competitive comparison with Samsung as the reason.
It is not easy to predict what specific steps President Trump will take to make up for the weakened price competitiveness of U.S. companies. If his administration moves to exempt tariffs on particular products made by U.S. firms in China for this purpose, however, Washington will hardly be able to avoid criticism over yet another unfair trade practice.
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