Monday , 20 August 2018
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Apple CEO will meet with Donald Trump to try to avoid ‘commercial war’

Tim Cook, Apple’s CEO, will meet tomorrow with US President Donald Trump at a meeting that the press will not have access to. According to Fortune, Cook’s purpose with the meeting will be to try to dissuade the president from fomenting a “trade war” between the US and China.

Apple has good reason to get involved. This is because although it is an American company, it is also highly dependent on the Chinese market – both because China accounts for most of the iPhones sold in the world and because it is there that much of the company’s products are manufactured. In this way, the company can benefit as much from US government tax and business incentives as from the Chinese market.

But for that, the trade relations between the two countries need to remain stable, which is not the case. The Donald Trump administration has approved about $ 150 billion in tariffs on products imported from China. According to VentureBeat, these tariffs would be a kind of compensation for “bad agreements” and inequalities in trade relations between nations.

In response to this situation, China could also hamper the performance of US companies in its territory – and in that case Apple would take a serious risk. According to Fortune, a Chinese Communist Party newspaper quoted Apple as one of the companies that could hurt the most if the “trade war” between the US and China escalated – and given that the government itself is responsible for the newspaper’s writing, this can be seen as a direct threat to the company.

Apple Positioning

According to Fortune, Apple has not officially pronounced on the meeting with the president. However, Cook participated last month in a conference in Beijing in which he spoke about the intensification of trade relations between the two countries – and proved, as one would expect, contrary to protectionist measures.

“Countries that embrace openness do exceptionally and countries that do not embrace do not do,” he said. “I’m going to try to get cold heads out,” he continued. At the time, he was representing the United States at a major business meeting – so this is an important statement.

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