President Donald Trump has been emphatic: There will be no exemption from duty for Apple components manufactured in China.
In a tweet, the president made it clear that his priority is to bring production to the United States, a campaign promise he is planning to keep.
“Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China. Make them in the USA, no tariffs,” the president wrote.
The president’s statement responded to a request by the technology giant that requested duty-free treatment for some of the components of its new Mac Pro currently manufactured in China, according to CNBC.
“There are no other sources for this proprietary, Apple-designed component,” the company said in a presentation, according to the same medium.
Economic adviser Larry Kudlow told reporters at the White House on Friday that President Trump has encouraged Tim Cook, Apple’s CEO, to move operations out of China and added that if the technology moves some of its Chinese operations to the United States “it would be a very good thing,” according to CNBC.
President Trump told reporters later on Friday that he believed Apple was thinking of opening a plant in Texas, according to Reuters.
“I want Apple to build their plants in the United States. I don’t want them to build them in China. So when I heard they were going to build it in China, I said, ‘No, that’s OK, you can build it in China, but when you send your product into the United States, we’re going to tariff you,'” he said.
Exodus of companies
More than 50 U.S., Japanese, and Taiwanese companies are moving production out of China because of the trade dispute between the United States and the Chinese communist regime, according to Asian Review.
“We need permanent measures to avoid the risk of tariffs and be eligible for U.S. government procurement,” said Kiyofumi Kakudo, CEO of Dynabook, a computer manufacturer according to Asian Review.
Companies are already looking for alternative production sites. Apple itself has asked its major suppliers to consider moving 15% to 30% of iPhone production out of the Asian country.
This trend is hurting Chinese export figures that have fallen in the first five months of the year by 5%, while India, Vietnam, and Taiwan are improving their profits considerably, explained Asian Review.
Since last July, the U.S. government has imposed three rounds of new tariffs on Chinese imports worth $250 billion.