Tariff Relief Keeps Mac Pro 'Made in USA'

 

''As part of its commitment to U.S. economic growth, Apple today confirmed that its newly redesigned Mac Pro will be manufactured in Austin, Texas,'' the American technology giant said in a news release.

 

The latest tower-style computer was publicized at Apple's annual Worldwide Developer Conference in June. The new Mac Pro starts at ,999 and will be available to order in the fall. Apple has made the Mac Pro at the Austin facility since 2013. But the California-based company reportedly had planned to shift assembly of the computer to China earlier this year.

 

The move to keep Mac Pro production in the U.S. came soon after Apple received tariff exemptions on 10 China-made components last week. The exemptions given by U.S. trade regulators let the company import some parts it needs for the new computer without paying the 25% tariffs announced by President Donald Trump in May.

 

Apple asked for exemptions on 15 parts for the Mac Pro in June. But Trump opposed the idea of a waiver, tweeting that ''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!'' In response, Apple CEO Tim Cook reaffirmed the company's intention to keep Mac Pro production in the U.S. during the most recent earnings call.

 

''We thank the administration for their support enabling this opportunity,'' Cook said in the company's release Monday. Apple said the new Mac Pro features two and a half times more American-made components compared with previous models. The company also said it is on track to fulfill a commitment to invest 0 billion in the U.S. by 2023.

 

Last year, Apple announced plans to grow facilities in Austin and a dozen other American cities. Apple has been caught in the crossfire of the trade war between Beijing and Washington, with Trump frequently urging companies to leave China and bring more jobs to the U.S. The Mac Pro is the only major Apple product assembled in the U.S. The majority are assembled in China, such as the iPhones.

 

But Dan Ives, managing director at Wedbush Securities, said ''We believe Apple is aggressively looking at alternative options within the supply chain in light of this U.S.-China trade battle,'' with the potential to move 5% to 7% of iPhone production to India or Vietnam.

 

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