Last updated on March 23, 2020
You must be aware of the recent developments in the situation between the US and China. We have seen that the trade war between China and the US has reached to a greater extent. It is also known that tariffs have been imposed for importing from China. However, Apple is also one of the companies caught in the war between these two countries. As you might be aware that Apple imports its products from China. And due to this tariffs, Apple will have to pay import taxes to the US government.
Last month, reports came that Apple has been exempted from the import tariffs which means that the company will not have to pay taxes. However, this report was partly true because the Bloomberg reports that US Trade Representative Office has denied tariff relief to Apple on five Mac Pro parts. Therefore, the company will still have to pay a 25% import tax on those components which are not included in tariff relief.
As per USTR, the request for five components were denied because they “failed to show that the imposition of additional duties on the particular product would cause severe economic harm to you or other US interests.” This comes after Apple announced that they will be manufacturing their new Mac Pros in Austin, Texas instead of China. Since 2013, Apple has been manufacturing its older Mac Pro devices at the Texas facility and these new devices will also be manufactured there.
Talking about exclusion from tariff relief, they are decided on the basis of three factors. The factors are “if the product is only available from China and if a comparable product is available in the US or third countries if the added duties on the product would cause significant economic harm, and if the product is strategically important to Chinese industrial programs.”