The US sales representative's office has denied Apple tariff relief in five parts for its new Mac Pro computer, as reported by Bloomberg. Each of the imported components – the optional wheels, a circuit board for managing input and output ports, power adapter, charging cable and a cooling system for the processor – is now probably subject to the proposed 25 percent rate on goods imported from China.
Apple initially asked the Trump administration to exclude components for its Mac Pro desktop from tariffs in July, including the outer case, the Magic Mouse 2 and the Magic Trackpad. The office recently granted Apple exceptions 10 different items, so not every imported part is subject to tax.
The news comes on the heels of Apple announcing that it will switch production of the new Mac Pro & # 39; s from China to its facility in Austin, Texas, where since 2013 the company has been selling the Mac Pro & # 39; s previous generation. The denial also happens on the same day Trump went to Twitter to applaud the company's decision to make the computer at home.
Great news! @Apple has announced that it is building its new Mac Pro in Texas. This means hundreds of American jobs in Austin and for suppliers throughout the country. Congratulations to the Apple team and their employees! https://t.co/FMrWFq9wcz
– Donald J. Trump (@realDonaldTrump) September 30, 2019
When Apple decided to switch production from China back to its existing US factory, the company said in a press release that the change was possible because of a "federal product exclusion"On" certain necessary components. "The company says the value of its US-made components in the new Mac Pro 2.5x is more valuable than the previous generation, and so a tariff exclusion can save Apple enough money to make US assembly worthwhile.
Exclusions are considered on the basis of three criteria: if the product is only available in China and if a similar product is available in the US or third countries, if the added rights to the product would cause significant economic damage, and if the product is strategically important for Chinese industrial program & # 39; s.
According to Bloomberg, the USTR said the five exclusion requests were denied because they could & # 39; failed to demonstrate that imposing additional duties on the specific product would cause serious economic harm to you or other US interests & # 39 ;.
The Trump administration has proposed rates of as much as 25 percent on computers as part of an ongoing trade battle with China. In July, Trump tweeted that Apple would not get an exemption for Mac Pro components and said, "Make them in the US, not rates!" The technical industry as a whole, including Microsoft, Intel and Nintendo, has cut back on rates. In a submission in June, Apple said the additional costs "would result in a reduction in Apple's US economic contribution" and "change the playing field for the benefit of our global competitors."