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Apple: Tariff exemption rejected – Mac Pro 2019 affected by trade war

by Milan
July 26, 2019
Image: Apple

Image: Apple

The Mac Pro, introduced in 2013, is still manufactured in Texas today and carries the label “Assembled in the USA” – with the new Mac Pro 2019 generation, that is changing. Assembly is being relocated to China and that is becoming a problem.

So far, Apple has been spared from the trade war between China and the US – but that's about to change. The reason is the new Mac Pro. Apple announced at the end of June that final assembly of the new Mac Pro will no longer take place in the US, but in China, and this will now cost extra. President Donald Trump announced on Twitter today that the government has rejected Apple's request for an exemption from punitive tariffs – meaning Cupertino will have to pay extra for the high-performance computer. "Build it in the US – no tariffs!" Trump said.

“Final assembly is only one part of the manufacturing process”

Apple already commented on the issue when it made the announcement a few weeks ago and explained the move. Cupertino has repeatedly stressed in the past that China has significantly more skilled workers, which is why "Assembled in China" should not be underestimated - the error rate in production is significantly lower there than in other countries. The current Mac Pro from 2013 is the only major Apple hardware product that is manufactured in the USA. All other devices are assembled by Chinese suppliers such as Quanta, Foxconn and Co. In a statement to the WSJ, an Apple spokesperson said: "Final assembly is only part of the manufacturing process," adding that the new Mac Pro is developed and designed in the United States and contains some components manufactured in the USA.

High-end configuration could cost up to $50,000

The Trump administration seems to see things differently. The current tariffs allow a surcharge of up to 25 percent of the price of components or devices. The Mac Pro starts at around $6,000 and could cost up to $50,000 in its high-end configuration - the actual price has not yet been confirmed. A penalty of up to 25 percent could be very expensive in this case and have a major impact on the final price. The Mac Pro will be launched this fall. Amazon Echo Dot (3rd Gen.) on offer – only for a limited time (Image: Apple)

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