Apple announces that it will make a new Mac Pro in Texas after Trump has demanded that the company stay in the US
Apple announces that it will make a new Mac Pro in Texas after Trump demanded that the company stay in the US and threatened with tariffs amid reports that it moved to China
- Apple received federal product exclusions on tax-free components for its new Mac Pro
- Company is excluded because it is set up to produce workstations in Texas
- US President Donald Trump warned that Apple would not receive exemption or relief
Apple has found a way to avoid tariffs on Chinese imports for its next-generation Mac Pro computer by building the computers in the United States.
The technology giant has announced plans to produce workstations in Austin, Texas after receiving federal product exclusions.
The news comes months after US President Donald Trump tweeted: Apple is not exempt from duties or relief for Mac Pro parts made in China. Make them in the US, no rates & # 39 ;.
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Apple has found a way to avoid tariffs on Chinese imports for its next-generation Mac Pro computer by building the computers in the United States. The technology giant has announced plans to produce workstations in Austin, Texas after receiving federal product exclusions
The US and China have been trapped in a trade war for at least two years because Trump demands that China change its policy on intellectual property protection, technology transfer, industrial subsidies and other trade barriers.
After Trump imposed 25 percent rates for $ 250 billion in Chinese goods and threatened to levy an additional $ 300 billion in taxes, China imposed rates for $ 110 billion in imports into the US.
Trump has maintained that tariffs harm China, but financial experts have said that importers from China to the US pay the extra costs directly
And the US president warned companies that were using the cheap goods that were produced in China.
Trump said he wants Apple and other manufacturers such as Apple (pictured is Apple CEO Time Cook (left) with US President Donald Trump (right)) to move their production from China and other countries to the United States.
Trump said he wants Apple and other manufacturers to move their production from China and other countries to the United States.
At the weekend, Apple had received federal product exclusions, allowing it to import some of the components it needed for the Mac Pro without paying import fees.
Apple said the new Mac Pro models contain more than twice as many American components than previous models.
US vs CHINA: THE TRADE WAR
Washington and Beijing are stuck in a war over American complaints that China is stealing American trade secrets and unfairly subsidizing its own companies in their efforts to develop global competitors in high-tech industries such as artificial intelligence and electric cars.
To try to force Beijing to reform its trade practices, the Trump government has imposed import taxes for billions of dollars of Chinese imports, and China has taken revenge with rates on US exports.
Mr Trump has insisted that China itself pay the rates.
But in fact, economic research has concluded that the cost of the rights are on American companies and consumers.
Trump had indirectly recognized the impact of the rates by postponing some of the rights until December 15, after holiday goods are already on the shelves.
After Trump imposed 25 percent rates for $ 250 billion in Chinese goods and threatened to levy an additional $ 300 billion in taxes, China imposed rates on $ 110 billion in US imports.
The countries have recently imposed an increase in the rates on each other's goods.
A US tax of 15 percent was applied to around $ 112 billion in Chinese imports.
All in all, more than two-thirds of the consumer goods that the US imports from China are now faced with higher taxes.
In China, the authorities began levying higher duties on US imports on Sunday afternoons, according to staff at the customs offices in Beijing and the southern port of Guangzhou.
Rates of 10 percent and 5 percent apply to items ranging from frozen sweet corn and pig liver to marble and bicycle tires, the government announced earlier.
After the rate increase last month, 87 percent of the textiles and clothing that the United States buys from China and 52 percent of the shoes are buying import duties.
On December 15, the Trump administration is scheduled to impose a second round of 15 percent rates – this time at around $ 160 billion in imports.
When these rights come into effect, almost all goods imported from China fall.
On December 15, the Chinese government released a list of US imports aimed at sanctions if US tariff increases come into effect.
In total, Beijing says Sunday's fines and the planned December increases will apply to $ 75 billion worth of American goods.
& # 39; The Mac Pro is Apple's most powerful computer ever and we are proud to build it in Austin. We thank the administration for their support that made this opportunity possible, "said Apple CEO Tim Cook in a statement.
In a tweet in July, Trump said he wanted to reject Apple & # 39; s applications for the Mac Pro exceptions. Trump tweeted on July 26: & # 39; Apple will not be exempt from duties or relief for Mac Pro components made in China. Make them in the US, no rates! & # 39;
& # 39; A man I love and respect very much is Tim Cook, and we will solve it, I think they are going to announce that they are going to build a factory in Texas, and if they do, I will start very happy "Okay," Trump said later.
Apple is on track to deliver on its promise to invest $ 350 billion in the US economy by 2023.
Last year alone, the company spent more than $ 60 billion on more than 9,000 domestic suppliers throughout the country, including at production sites in 36 states.
Apple's investment in innovation supports 2.4 million jobs in all 50 states, including 90,000 direct employees.
The new Mac Pro includes components that have been designed, developed and produced by more than a dozen US companies for distribution to US customers. Manufacturers and suppliers in Arizona, Maine, New Mexico, New York, Oregon, Pennsylvania, Texas and Vermont, including Intersil and ON Semiconductor, offer advanced technology.
The American production of Mac Pro is made possible after a federal product exclusion that Apple receives for certain necessary components.
The value of American components in the new Mac Pro is 2.5 times greater than in Apple's previous generation Mac Pro.
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