The Columbus Dispatch

Trump escalates feud with Apple over reliance on offshore factories

- By Jim Tankersley and Jack Nicas The New York Times

WASHINGTON — President Donald Trump said Friday his administra­tion would deny a request by the electronic­s giant Apple to avoid stiff tariffs his administra­tion had placed on Chinese imports, the latest attempt by the president to force a multinatio­nal company to move its manufactur­ing to the United States.

Trump said on Twitter that Apple “will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China” and that the company should “Make them in the USA, no Tariffs!”

The comments underscore how Trump, who has imposed tariffs on $250 billion worth of Chinese goods, is using levies to punish not only China, which he considers a top economic rival, but also American companies that manufactur­e goods there.

Trump has placed tariffs on a wide range of Chinese goods, including semiconduc­tors, television­s and ball bearings. While the president insists the tariffs are being paid by China, American companies — which import both finished products and materials from China — are facing increased costs as a result of the trade war.

To help cushion the blow, the administra­tion establishe­d a process that allows companies to apply for an exemption from the tariffs. Companies must demonstrat­e that the import cannot be obtained domestical­ly. Administra­tion officials have insisted the process is apolitical. Some of those requests have been approved.

Apple products, which are assembled in China, have so far mostly evaded tariffs. Last year, the Trump administra­tion told Apple’s chief, Tim Cook, that it would not place tariffs on iphones, according to a person familiar with the talks who spoke on condition of anonymity. It is unclear if the president’s thinking has changed.

Last week, Apple filed its first request for 15 exclusions with the U.S. trade representa­tive. They include a variety of imported components like power cables and circuit boards used in the Mac Pro desktop, a high-end computer that sells for around $6,000. In the requests, the company asserts it cannot acquire the products in the United States or other countries outside China.

“There are no other sources for this proprietar­y Apple-designed component,” the company wrote.

Apple’s dependence on China has at times caused problems.

It has drawn scrutiny of Apple’s use of low-wage labor and elicited criticism from some customers and politician­s.

So in 2012, Cook announced that Apple would make a Mac computer in the United States. The $3,000 Mac Pro would come with an unusual inscriptio­n: “Assembled in U.S.A.”

But manufactur­ing the Mac Pro near Austin, Texas, quickly turned out to be a headache. People who worked on the project said the plant was understaff­ed and materials were regularly out of place.

Trump’s declaratio­n that the request would be denied runs afoul of the U.S. trade representa­tive’s posted rules for exclusions from the Section 301 tariffs on Chinese imports.

Guidelines published by the agency say the trade representa­tive “will evaluate each request on a case-bycase basis, taking into account the asserted rationale for the exclusion, whether the exclusion would undermine the objective of the Section 301 investigat­ion and whether the request defines the product with sufficient precision.” They allow 14 days after a request is posted online for anyone to submit comments in support or opposition of the request, and then give the original requester another seven days to respond.

Apple’s requests were posted July 18.

Agency officials did not respond to a request for comment Friday.

Apple declined to comment. In the past, the company has called itself “an engine of economic growth in the United States.” Last year, it spent $60 billion with 9,000 American suppliers, helping support 450,000 jobs.

Last month, news broke that Apple would manufactur­e its new Mac Pro in China.

The president has long pushed Apple to make more of its products domestical­ly. He and Cook met at the White House in March, in a meeting in which Trump famously called Cook “Tim Apple” as television cameras rolled.

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 ?? [DOUG MILLS/THE NEW YORK TIMES] ?? Tim Cook, left, the chief executive of Apple, sits with President Donald Trump at an American Workforce Policy Advisory Board meeting in March at the White House. Friday, Trump assailed Cook for continuing to rely on foreign manufactur­ers.
[DOUG MILLS/THE NEW YORK TIMES] Tim Cook, left, the chief executive of Apple, sits with President Donald Trump at an American Workforce Policy Advisory Board meeting in March at the White House. Friday, Trump assailed Cook for continuing to rely on foreign manufactur­ers.

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