Apple got its waivers, Trump got his U.S. assembly line

From Mark Gurman’s “Apple’s New Mac Pro to Be Assembled in Texas After Tariff Waiver” posted Monday on Bloomberg:

Apple Inc. said the next version of its high-end Mac Pro desktop computer will be assembled in Texas after the company received tariff waivers on key components.

The new model will be produced in the same factory in Austin operated by Flex Ltd. that has produced the previous Mac Pro since 2013, Apple said in a statement Monday. Manufacturing of the new model was “made possible” after the U.S. government approved on Friday Apple’s request for a waiver on 25% tariffs on 10 key components imported from China. The company was granted exclusions on several parts, including processors, power components and the computer’s casing.

While some key components will be made in China and exported to the U.S. for final assembly, Cupertino, California-based Apple said the new version includes 2.5 times the value of American-made parts as the previous model. The new Pro will include components made by more than 12 U.S. companies in states such as New York, Vermont and Arizona for distribution to U.S. customers, Apple said. The company didn’t specify whether this includes Mac Pros being sold outside the U.S.

While some key components will be made in China and exported to the U.S. for final assembly, Cupertino, California-based Apple said the new version includes 2.5 times the value of American-made parts as the previous model. The new Pro will include components made by more than 12 U.S. companies in states such as New York, Vermont and Arizona for distribution to U.S. customers, Apple said. The company didn’t specify whether this includes Mac Pros being sold outside the U.S.

 In a statement, Apple Chief Executive Officer Tim Cook thanked “the administration for their support enabling this opportunity.”

My take: Quid pro quo.

8 Comments

  1. Jerry W Doyle said:
    China has taken advantage of every opportunity to game the free trade system, maximize its own trade to build up its economy and in the process, they have done severe damage to the US economy. Political leaders, heads of developed nations, corporate CEOs, long have called out China for its “unfair trade practices” whose leaders do not comport with the WTO. Finally, a kahuna comes along and takes corrective action he feels is needed (as all other pleadings with China have failed) and most all who have complained about China’s past practices are now criticizing the very man who is forcing China to play by the rules. It reminds me of the old man who keeps a boarding house. When one guest complains that the towel is dirty, he says, “… folk have been wiping on that towel for a month without complaining. I don’t see what’s the matter with you.”

    It’s a travesty that the head of the DNC and its other party leaders do not emulate Tim Cook’s working style with the kahuna. I rolled-my-eyes when CEOs disbanded from the president’s Business Advisory Councils over Charlottesville. Anyone who ever has been involved in negotiations or in Labor-management relationships know that to have input into the process one has to remain at the table, no matter how disconcerting it may be to the individual. You leave the table and you will never get your ideas, your suggestions or your input into the mix. Cook understands acutely the importance of remaining at the table to do business; and, he did remain at the table to cultivate a strong working relationship with the president and to establish appropriate linkages with other key Executive staffs so as to have a network of resources to tap to get things done for Apple.

    It is myopic in not understanding fully how Cook’s continuing to work with the president has not been positive for Apple. I only wish the DNC and its other party leaders could dispense with a plethora of investigations, constant vituperative personal attacks and instead, roll-out the “charm offensive” as has Tim Cook, shove-up their sleeves and think first of the voters back home who voted for them to go to Washington to do the people’s work that truly helps their constituencies and focus on doing that instead of perpetually throwing up-on-the-wall whatever they think may possibly stick so that they then can use it to pave a path for possible impeachment, or to denigrate the man sitting in the Oval Office. Cook has shown us how to do business with this administration. This is what the vast majority of citizens with whom I converse want done for the country.

    4
    September 23, 2019

Leave a Reply