Apple Asks U.S. for Import Tariff Exemption on Parts for New Mac Pro After Shifting Assembly to China

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Jul 23, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple has asked the Trump administration to exclude components for the new Mac Pro and various accessories like the Magic Mouse and Magic Trackpad from being subject to a 25 percent tariff on Chinese imports, according to filings with the Office of the U.S. Trade Representative uncovered by Bloomberg.


    The administration has promised relief if companies can show that parts or products can only be obtained in China, among other factors, according to the report. In all of its exclusion requests (search for Apple), Apple indicates that "there are no other sources for this proprietary, Apple-designed component."

    The new Mac Pro will be assembled by contract manufacturer Quanta Computer in China, according to The Wall Street Journal. The current Mac Pro, released in 2013, has been assembled in Texas since its release and is Apple's only major hardware product manufactured in the United States.

    Last month, an Apple spokesperson said "final assembly is only one part of the manufacturing process," adding that the new Mac Pro is designed and engineered in the United States and includes some U.S.-made components.

    Trump's administration has threatened to impose another $300 billion in tariffs on Chinese imports, which would impact nearly every Apple product, but it has so far held off. In a recent letter, Apple warned that these tariffs would reduce its economic contributions and threaten its global competitiveness.

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

    Article Link: Apple Asks U.S. for Import Tariff Exemption on Parts for New Mac Pro After Shifting Assembly to China
  2. now i see it macrumors 68040

    Jan 2, 2002
    Yep, only the Chinese can make computers, so Apple you're off the hook.
  3. Andres Cantu macrumors 68030

    Andres Cantu

    May 31, 2015
    Rio Grande Valley in South Texas
    No other sources or don’t want to pay more for there to be other sources? C’mon Apple, you’re already making a killing in margins.
  4. brinary001 macrumors 6502a


    Sep 4, 2012
    Midwest, USA
    Lol so all these companies are just going to get special passes anyway for their manufacturing in China? Why even pursue the tariffs in the first place then? Seems like this is more for show than actually implementing anything of substance, but then again that's all this "administration" has done from the beginning :rolleyes:
  5. cmwade77 macrumors 65816

    Nov 18, 2008
    Sorry, they chose to move the production to China, they had already been assembling it in the U.S. previously, which shows that it CAN be done.

    Now there could be an argument that the parts can only be purchased from China and thus should be exempt from import tariffs, but the fully assembled machines should absolutely be subject to the import tariffs.

    As for the proprietary, Apple designed component, well it is proprietary and designed by Apple, which means they could literally take it anywhere that manufactures electronics (say Samsung in Korea even) and have them manufacture it, sorry, I don't buy into that argument, Apple owns the design, so they can do what they want, but they choose to get it from China, so yes, they should be subject to the tariffs as well.
  6. ChrisMoBro macrumors 6502


    Oct 31, 2016
    Ah so that’s why it’s so overpriced (especially the base model)
  7. csi24, Jul 23, 2019
    Last edited: Jul 23, 2019

    csi24 macrumors regular


    Nov 20, 2007
    This is taking profit margins to a whole new level. And no, it shouldn't be allowed. Sorry, you're building the computer over there, you've got to pay the tariffs too
  8. nvmls macrumors 6502a


    Mar 31, 2011
  9. thadoggfather macrumors G4


    Oct 1, 2007
  10. OneBagTravel macrumors 6502a


    Oct 18, 2013
  11. Schizoid macrumors 6502a


    May 29, 2008
    I’m sure Tim will write to all eight people that are going to buy this computer and apologise for the price hike.
  12. turbineseaplane macrumors 601


    Mar 19, 2008
  13. konqerror macrumors 6502a

    Dec 31, 2013
    Lenovo assembles computers, particularly workstations and servers, in Mexico so it falls under NAFTA.

    Funny how the Chinese are better at this than Tim Cook.
  14. jgbr macrumors 6502a

    Sep 14, 2007
    They chose to move it so why should they now have an exemption.
  15. Saipher macrumors 6502


    Oct 25, 2014
    Laughable is the nicest thing I can say about the comments here. It seems MacRumors is filled with armchair production engineers and import/export experts. I said it before and I’ll say it again, if you think that the jobs performed by the uneducated masses of third world countries are a good thing, maybe you should question your life choices. America is past manufacturing, other developing countries are not. Get a decent education and this will not be an issue to you.
  16. Mactendo macrumors 68000

    Oct 3, 2012
    Somehow Japan is not “past manufacturing” and it’s not a “developing third world country”.
  17. psingh01 macrumors 65816

    Apr 19, 2004
    As if the prices they announced didn’t already have the tariffs baked in. :confused:
  18. Eorlas macrumors 6502a

    Feb 10, 2010
    Just because they're making a killing in margins does not mean they want to take on the responsibility of making the product in the US. And fully expect them to jack up the Apple Tax long-term if they end up having to.

    People like the idea of "Made in the USA" but not "Made in the USA and sold accordingly."
  19. AxiomaticRubric macrumors 6502


    Sep 24, 2010
    On Mars, Praising the Omnissiah
    Hey Apple..... just build the damn things in Texas. :mad:
  20. dannyyankou macrumors G3


    Mar 2, 2012
    Scarsdale, NY
    Maybe they should’ve thought about that before they decided to move out of Texas.
  21. konqerror macrumors 6502a

    Dec 31, 2013
    Japan has had a stagnant economy for two decades and has serious demographic issues. It is the most indebted country, as percent of GDP, by a long shot.

    Japan had an early start on cell phones, then Apple and Google came in and completely took over. Their world leadership position in electronics, particularly RAM, flash, and displays, all fell and their core businesses there are now owned by Korea or the US. Japan never had a serious player on the Internet.

    Japan is an example of what can go wrong.
  22. mozumder macrumors 6502a

    Mar 9, 2009
    YOU have to pay the tariffs, since you'd be the one buying it.

    Do YOU want to pay extra for computers that have to be made in China? Why or why not?

    Do you think you can go without upgrading or replacing your computer if it dies?
  23. konqerror macrumors 6502a

    Dec 31, 2013
    Because it's a closed proprietary system, eliminating competition. Imagine if Dell is stuck in China but Lenovo manufactures in the US, Mexico or even Taiwan. Dells now cost 25% more, so you buy Lenovo. They're largely the same computer, and both run your applications the same. Now Dell is forced to manufacture elsewhere or cut margins, they can't pass the cost onto the user like Apple can.

    At one point people will say enough of the Apple tax and buy PCs instead. This already happened with smartphones in markets including India and Brazil, people bought Android, forcing Apple to manufacture locally.
  24. BuddyTronic macrumors 65816

    Jul 11, 2008
    Apple doesn’t have to really ask. Apple already made a deal with Trump about this trade war stuff and offshore funds repatriation.

    Apple gets a pass from Trump - no matter what :)

    There are other opinions expressed here, but they are on par with a “CNN perspective” on the world in general. I’m coming from a fairly common sense and business based perspective on this chess game.
  25. Mactendo macrumors 68000

    Oct 3, 2012
    All of that has nothing to do with the point that Japan is not “past manufacturing” and it’s not a developing third world country.

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