Apple Seeks Mac Pro Parts Tariff Exclusion After Move to China
Apple Seeks Mac Pro Parts Tariff Exclusion After Move to
China
Mark Gurman and Mark Niquette July 23, 2019
Apple Inc. has asked the Trump administration to exclude
components that make up the forthcoming Mac Pro high-end desktop computer from
import tariffs, weeks after planning to re-locate production of the line to
China from Texas.
The Cupertino, California-based technology giant is
seeking relief from duties of 25% on key Mac Pro parts and accessories that go
with it, ranging from the stainless steel and aluminum frame, power supplies,
internal cables and circuit boards, and its optional wheels, according to
filings posted by the Office of U.S. Trade Representative. The documents don’t
specifically mention the Mac Pro, but the features and dimensions listed by
Apple in the filing closely resemble the planned computer.
The exclusion requests from the iPhone maker were posted
July 18 and are now subject to a public comment period before they’re reviewed.
Some Apple products have been spared from tariffs in the past, including the
Apple Watch and AirPods. Apple declined to comment on the filing.
U.S. President Donald Trump has promised relief if
companies can show that parts or products can only be obtained in China, aren’t
“strategically important” to Chinese industrial programs, or that the duties
would cause “severe economic harm.” Trump has tweeted that companies won’t face
a tariff if they make their goods “at home in the USA.”
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 major device assembled in the U.S. The previous design
had been built in Texas since 2013. The new model was announced in June and
will go on sale later this year, starting at $5999. Apple said last month that
“final assembly is only one part of the manufacturing process.”
Apple is also seeking duty exclusions on its Magic Mouse
and Magic Trackpad, complementary devices for operating the computer, as well
as an accompanying USB cable for charging external mobile devices.
Trump slapped tariffs on $250 billion in Chinese goods
last year in response to a trade deficit and allegations of intellectual
property theft and unfair trade practices as the world’s two largest economies
seek to negotiate a sweeping trade deal.
Trump had threatened tariffs on an additional $300
billion in Chinese imports in May in response to what he said was Beijing’s
reneging on agreed provisions. But he put them on hold after meeting with
Chinese President Xi Jinping in June in Japan to restart negotiations.
To contact the reporters on this story: Mark Gurman in
San Francisco at mgurman1@bloomberg.net;Mark Niquette in Columbus at
mniquette@bloomberg.netTo contact the editors responsible for this story:
Margaret Collins at mcollins45@bloomberg.net, ;Tom Giles at
tgiles5@bloomberg.net, Molly Schuetz, Andrew Pollack
©2019 Bloomberg L.P.
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