In the midst of escalating trade wars between the U.S and China, Apple announced that it will move Mac Pro production to China. The company sought duty exclusions for the Mac Pro and as expected the Trump administration denied the same. Now it has come to light that Apple’s request for duty waive off is already in the advanced stage of the review process.
Bloomberg reports that ten out of 15 requests for duty exclusions are now nearing the final stage of review according to the U.S Trade Representative’s office. The request for duty exclusions has been entertained so far. Once Customs and Border Protection confirms that it can determine the exclusion then the exclusion can finally be granted.
This is exactly opposite to what Trump had tweeted earlier. His Tweet read “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!” However, Trump later told that “we’ll work it out.”
$200 Billion worth of Chinese products in the U.S will face an increased duty of 25% from the previous 10%. The tariff is likely to rise and set at 30 percent by October this year. However, Trump has delayed import tariff on consumer goods like iPhones, iPads, MacBooks, and others till Dec.15.
This is not the first time Apple has asked for a tariff exclusion. Previously, the company has asked for a tariff exclusion on products like Magic Mouse, Magic Trackpad and Mac Pro parts. After a discussion with Trump, Tim Cook said that the company is “working and investing currently incapacity to do so.” In all likelihood, Apple will import Mac Pro parts from China and assemble in the U.S