Korea may benefit from US-China trade war

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InstaForex Loprais Team - Official participant of the Dakar rally

Korea may benefit from US-China trade war

30-08-2019 14:03

Korea may benefit from US-China trade war

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Korea may benefit from US-China trade war

Apple CEO Tim Cook shared with the US President his outlook for the trade war with China. Notably, Cook has never commented on the major confrontation between the two largest world economies since it began even though it directly relates to his business. The Chinese market is very important for Apple. Moreover, part of its production plants is located in China. Therefore, the ongoing trade war may significantly affect the iPhone maker. Recently, Tim Cook has broken the silence and expressed his opinion regarding new sanctions on the remaining Chinese goods in a private conversation with Donald Trump. “And I thought he made a very compelling argument, so I’m thinking about it,” the US President said after the meeting.

Apple CEO pointed at the competitive advantage that Samsung, the corporation’s main rival, would get in case of the new tariffs were introduced. He believes that a 10% increase in tariffs for the remaining category of China’s goods will directly reflect at the cost of the company's products. The price on almost all Apple’s products will go up – iPhone, Airpods, Apple Watch, MacBooks, and smart speakers. Given this scenario, the South Korean technology giant will receive a solid advantage. However, the success and prosperity of US manufacturers are one of Trump's most important agendas, so he takes such arguments seriously.

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