So you’d like to see America’s trade war in action, would you? Here’s an example: Apple’s been denied a tariff exemption for some five components used in its new Mac Pro. First reported by Bloomberg, Apple may wind up paying up to 25% more for the Mac Pro’s power adaptor, charge cable, cooling system, and an IO circuit board. Also on the list are the Mac Pro’s optional wheels. So, we guess, don’t order those?
Computer says no
Apple’s already had its request for exemption granted by the States’ Trade Representative’s office for ten other components, so this denial is both a kick in the nards and not much of a train smash. Bloomberg reports that the items in question were denied because Apple “…failed to show that the imposition of additional duties on the particular product would cause severe economic harm to you or other US interests.”
Apple’s already assembling the Mac Pro in Austin, Texas, rather than overseas, so you’d figure the Trump administration would cut the company a little slack. That… doesn’t seem to be the case. Still, it could have been worse.
Silver linings
Apple applied for tariff relief for fifteen components and had that relief granted for two-thirds of them. Just five are subject to tariff increases of 25%. Which, in the States, isn’t a whole lot of cash. Here, where a Mac Pro (even the old trash-can model) is the same price as a car, that additional expense isn’t quite as easy to gulp down.
Apple hasn’t confirmed how the tariff exemption failure will affect the price of the Mac Pro. It’s possible that Apple will eat the cost on this one, as the premium computer was already a costly endeavour. It’s just as possible that the extra cost will be tacked onto the $6,000+ (R92,000 or so) price tag — American buyers, those who can afford the Mac Pro, are less likely to notice an extra $20 to $50 on the total. Even if it means that end-users are the ones paying for Trump’s tariffs at the end of the day.
Source: Bloomberg
