The Columbus Dispatch

Apple gets tariff waivers, to make Mac Pro in Texas

- By Jack Nicas

SAN FRANCISCO — Apple will make its new Mac Pro computer in Texas after the Trump administra­tion agreed to waive tariffs on some of its Chinese-made parts, the company said Monday.

The United States on Friday granted Apple’s requests for tariff exemptions for 10 Chinese parts in its new Mac Pro.

The announceme­nt Monday ended a monthslong public dance between the White House and Apple over tariffs and the company’s ability to build products in the United States.

Apple has for years made the Mac Pro in Texas, an experiment in U.S. manufactur­ing that has created some headaches. In June, shortly after Apple unveiled a new version of the Mac Pro, reports surfaced that Apple would shift the production to China.

Apple then asked the White House to waive tariffs on some components, suggesting it still wanted to make the Mac Pro in the United States. President Donald Trump responded 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!"

Days later, Timothy Cook, Apple’s chief executive, said Apple wanted to make the Mac Pro in America but suggested it needed tariff exemptions to do so. Weeks later, Trump tweeted that he was dining with Cook and that Apple "will be spending vast sums of money in the U.S. Great!"

The Mac Pro is Apple’s most expensive computer, starting at $6,000, and is targeted at profession­al customers such as photograph­ers and film editors. It is among Apple’s lowest-volume products.

Trump for years has pressured Apple and other companies to shift manufactur­ing to the United States. Apple has been able to make a specialize­d product like the Mac Pro in the United States, but high-volume products like the iphone would be difficult to manufactur­e outside China because no country can match China’s number of trained workers and its supply-chain infrastruc­ture, according to analysts and former Apple employees.

Still, to reduce its dependence on China, where it assembles most of its products, Apple is investigat­ing ways to increase manufactur­ing in Vietnam and India, even urging some suppliers to open new plants there, according to a former Apple executive who spoke on the condition of anonymity because of confidenti­ality agreements with Apple.

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