Apple asks Trump administration to exclude parts for the new Mac Pro from 25% import duties when the company moves the production line from Texas to China
- Apple has requested that parts for its new Mac Pro desktop be excluded from the rates
- Last month, the company announced that it would move the production line from Texas to China
- Trump administration has threatened to impose new taxes to cover almost all imports from China and has pressured Apple to make products in the US to avoid rates
- Apple is looking for relief from 25% import duties on Mac Pro parts and accessories
- In the past, Apple products such as Apple Watch and AirPods were spared from rates
Apple has asked the Trump administration whether parts used in the production of its new Mac Pro desktop can be excluded from import tariffs, almost a month after the company moved production from the Texas line to China.
According to Bloomberg, the company is looking for a 25 percent exemption on Mac Pro parts and accessories.
Some of those components are the stainless steel and aluminum frame of the desktop, internal cables, power supplies and circuit boards.
Apple submitted the request for review on July 18.
Apple has asked the Trump administration whether components used in the production of its new Mac Pro desktop (file image, June 2019) can be excluded from import tariffs, almost a month after the company has produced the line from Texas to China moved
In the past, some Apple products were spared from rates, including the Apple Watch and AirPods.
Last month, the company asked its major suppliers to assess the cost implications of moving 15 percent to 30 percent of their production capacity from China to Southeast Asia, according to a Nikkei report.
Apple announced the move at a time when the Trump government has threatened to impose new taxes to cover almost all imports from China and press Apple and other manufacturers to make their products in the US if they want to avoid tariffs.
China is an important market for Apple and an important production center for its devices.
The company achieved nearly 18 percent of its total sales from Greater China in the quarter that ended in March.
Apple & # 39; s Mac Pro, a $ 6,000 machine used by creative professionals, has to deal with declining demand, the diary said, although the company has not published specific sales numbers for its Mac Pro machines.
The desktop is part of the company's Mac product line, which accounted for less than 10 percent of Apple's total revenue in 2018.
In 2018, Apple sold around 18 million Mac products, compared to around 218 million iPhones.
The company is seeking exemption from 25 percent of Mac Pro parts and accessories. Some of those components include the stainless steel and aluminum frame of the desktop (file image), internal cables, power supplies, and circuit boards
& # 39; Like all our products, the new Mac Pro is designed and built in California and includes components from different countries, including the United States, & # 39; said an Apple spokesperson.
& # 39; The final assembly is only part of the production process. & # 39;
Apple's decision coincides with the end of the tax subsidies it received for making the desktop at a Texas factory run by contract manufacturer Flex Ltd, according to the Journal.
& # 39; (This) serves as a reminder that, compared to the US, production in China remains a cheaper alternative and benefits from an existing infrastructure, as opposed to having to rebuild in the US & # 39 ;, said analyst Tom Forte from DA Davidson. .
The technology giant has tapped contractor Quanta Computer Inc. to produce the computer and is in the process of manufacturing at a factory near Shanghai, the report said.
Quanta did not respond to a request for comment.
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