Apple announced this morning that the company will manufacture its new Mac Pro in its facility in Austin, TX.
There is a slight catch. Apple secured tariff waivers “for certain necessary components” not made in America.
Apple decided in June to move production of the Mac Pro to China. A month after the decision, President Donald Trump vowed not to give Apple any tariff waivers or relief. The company could only avoid tariffs if it builds the Mac Pro in America.
Despite the threat, Apple filed 15 requests for tariff exemptions:
Among the computer components that are now exempt for Apple – and all other manufacturers – are partially assembled main circuit boards and graphics cards, and they are some of the most expensive parts in the machine. These have chips from Intel Corp, Nvidia Corp and Advanced Micro Devices Inc, which are mostly the costliest parts of the machines.
The Office of the U.S. Trade Representative approved 10 of those exemptions. This includes “partially assembled main circuit boards and graphics cards, which contain expensive chips from Intel, Nvidia and Advanced Micro Devices.”
Apple CEO Tim Cook stated that the majority of components will come “from 36 states, supporting 450,000 jobs with US suppliers.” He also vowed “to continue growing here.”
Apple touted its contributions to the American economy in its press release:
Apple is on track to fulfill its commitment to invest $350 billion in the US economy by 2023. Last year alone, the company spent over $60 billion with more than 9,000 domestic suppliers across the country, including at manufacturing locations in 36 states. Apple’s investment in innovation supports 2.4 million jobs in all 50 states, including 90,000 direct employees. Last week, Apple announced it is awarding $250 million from its Advanced Manufacturing Fund to Corning Incorporated, supplier of precision glass for iPhone, Apple Watch and iPad. To date, Apple has invested over $1 billion in American companies from its Advanced Manufacturing Fund — deploying the entire $1 billion initial investment and 20 percent of the $5 billion it subsequently committed to spend. In December, Apple announced plans to expand its presence in Austin and a dozen other cities across the country, including San Diego and Seattle.
Cook thanked Trump’s administration for working with them. He said the company believes “deeply in the power of American innovation” and “proud to be building it in Austin.”
Apple already announced an expansion of the Austin facility. It plans to spend $1 billion to update it, which will allow it to grow from 5,000 employees to 15,000.
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