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Tech & Science Apple Will Keep On Making Mac Pros In Texas After Scoring U.S.-China Trade War Exemptions

07:50  25 september  2019
07:50  25 september  2019 Source:   gizmodo.com.au

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Apple will still be manufacturing Mac Pro computers at its facility in Austin, Texas after winning exemptions from federal tariffs imposed in the course of Donald Trump’ s ongoing trade war with China , CNBC reported on Monday. The tech giant said that it had won exemptions allowing it to

Apple needs components from China to make the Mac Pro , but the parts are made more expensive by US tariffs on Chinese goods. Even as the US- China trade war drags on and tariffs ratchet up, the likelihood of tech companies quickly shifting manufacturing out of China — or moving it at all — is low.

a close up of a computer: Photo: Jeff Chiu, AP © Photo: Jeff Chiu, AP Photo: Jeff Chiu, AP

Apple will still be manufacturing Mac Pro computers at its facility in Austin, Texas after winning exemptions from federal tariffs imposed in the course of Donald Trump’s ongoing trade war with China, CNBC reported on Tuesday.

The tech giant said that it had won exemptions allowing it to import some Chinese parts necessary to assemble its new line of $US6,000 ($AU8,825) Mac Pros without paying the heightened tariffs, which are slated to affect some $800 billion in Chinese imports to the U.S. by mid-December. If the trade war isn’t resolved by that date, the tariffs are expected to hit the US tech sector like a brick wall.

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Apple would like to avoid paying additional tariffs if the Trump administration escalates its trade war with China . Final assembly of the current version of the Mac Pro takes place in Texas . Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China .

Apple Inc on Tuesday is expected to unveil new Mac computers using its own in-house processor chips, a move that could reignite a race to control week after the U . S . election. Markets have cheered Joe Biden’ s win for the presidency, and speculated that it will usher in a better trade relationship with

Apple CEO Tim Cook has launched a very public charm campaign on the president’s ego as part of a strategy to delay Apple’s exposure to the tariffs, which could inflate the cost of an iPhone by up to 25 percent. So far Cook has managed to keep Apple largely out of Trump’s mess, but the mid-December tariffs would hit every Apple product that isn’t exempted.

According to the Washington Post, reports had indicated that Apple was considering moving its Mac Pro assembly line in Texas to a plant near Shanghai before the Office of the U.S. Trade Representative caved and granted the exemptions last week. The exemption also resolves some awkward political problems for Trump, who has repeatedly bragged about all the Apple jobs he was supposedly bringing back stateside.

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(Reuters) - Apple Inc (O:AAPL) said on Monday it will make new Mac Pro desktop computers at its Austin, Texas facility, following some relief on tariffs U . S . trade regulators on Friday approved 10 out of 15 requests for tariff exemptions filed by Apple amid a broader reprieve on levies on computer parts.

Apple , if you recall, petitioned the Office of the United States Trade Representative for an exemption earlier this “ Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China ,” Trump’ s tweet reads. Apple previously manufactured the trash can Mac Pro in Texas , making it

CNBC noted that, par for the course, Trump was insisting that Apple pay the tariffs as recently as July:

In July, Trump signalled in a tweet that he wanted to reject Apple’s applications for the Mac Pro exclusions. Trump tweeted on July 26: “Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!”

“A man I have a lot of liking for and respect is Tim Cook, and we’ll work it out, I think they’re going to announce that they’re going to build a plant in Texas, and if they do that I’m starting to get very happy, ok,” Trump later said.

However, Politico noted that Cook “dined privately with the president in August, the second summer in a row he has done so.” Neat! That all sounds very much like the president isn’t picking and choosing who will suffer the most from his trade war based on who has the willpower to sit by nodding politely as he chokes down a rock-hard steak.

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“ Apple has made a big bet on Foxconn and China and in our estimation, can Questions about Apple overseas manufacturing come amid increasing tensions between the U . S Because of Apple ’ s size and dependence on Chinese sales and labor, the company has become a focal point in the trade war .

The new Mac Pro will be manufactured in China , a person familiar with the company’ s plans said last month, shifting production of what had been Apple ’ s only Despite being one of the most recognizable wireless carriers in the U . S ., AT&T stock has had a rough 2020. But the stock does have some perks.

“The Mac Pro is Apple’s most powerful computer ever and we’re proud to be building it in Austin,” Cook said in a statement to CNBC. “We thank the administration for their support enabling this opportunity.”

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