Apple Inc. (NASDAQ:AAPL) has asked president Trump’s administration not to impose import tariffs on parts for its new Mac Pro desktop as the company shifts production to China. The computer’s previous models were made in the US will be built in China.
Apple seeking Tariff exemptions
The company has filed a number of exemption requests against the proposed 25% increase on tariffs imposed on products coming from China. Apple is requesting for parts such as internal cables and circuit boards, stainless steel frame, power supplies as well as wheels to be exempted from the tariffs. Equally the company looks forward to tariff exclusions for accessories such as Magic Trackpad and the Magic Mouse. The request for exemption will now proceed to the public comment phase before the Office of the US Trade Representative makes a decision whether to grant the exemptions.
In June the company reported that it was shifting the production of the new mac pro desktop from Texas in the US to China. The company launched the $6,000 Mac Pro desktop in last month during the Worldwide Developer Conference. This will be the first time the desktop computer is receiving upgraded since it debuted in 2013. The Mac Pro computer features a modular design which can be changed and upgraded easily to meet user needs.
Tariffs on Chinese imports will affect production
The US has used technology imports as a bargaining tool in the on-going negotiations with China a move which is likely to affect major tech companies in the country. The Trump administration imposed up to 10% tariffs on some products but apple managed to avoid some of the tariffs on products like AirPods and Apple Watch.
In a recent cabinet meeting Trump stated that they still had a long way to go regarding tariffs with China adding that there is still additional $325 billion that the US can still impose tariff on. Wall street analysts have warned that the US’s 25% tariff on $200 billion of Chinese imports could make it more expensive for companies like Apple to produce products.