“We thank the administration for their support enabling this opportunity,” said Tim Cook.
Apple’s CEO made the statement after the company recently announced it would assemble the new Mac Pro computer in Texas’ capital city. This is made possible, Cook asserts, by exclusion from certain tariffs.
The Trump administration granted Apple an exclusion from tariffs on some important components of the new Mac Pro computer.
Apple applied for the waiver earlier this year and President Trump, in response, tweeted “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!”
But less than a month later, the president’s tune changed a bit, tweeting, “Having dinner tonight with Tim Cook of Apple. They will be spending vast sums of money in the U.S. Great!”
In June, Apple announced it would manufacture the Mac Pro in China, but the tariff exemption has changed plans on overall production.
The computers will be assembled in Austin while its various component parts will be shipped in from states such as Arizona, Maine, New Mexico, New York, Oregon, Pennsylvania, and Vermont.
However, some of the parts will still be manufactured in and imported from China, hence the tariff exclusion.
Thus far, 10 of the 15 parts made in China that Apple applied for a tariff exclusion have been approved by the administration.
Specifically, these parts are the graphics processing module; structural frame for automatic data processing (ADP); structural enclosure for ADP; partially-completed main logic board; power supply unit; motherboard stiffener assembly; accelerator module; Magic Mouse 2; ladder assembly; and Magic Trackpad 2.
“We believe deeply in the power of American innovation. That’s why every Apple product is designed and engineered in the US, and made up of parts from 36 states, supporting 450,000 jobs with US suppliers, and we’re going to continue growing here.” Cook concluded in his official statement.
According to the State of Texas, Apple has received two separate commitments from the Texas Enterprise Fund — a fund designed to attract businesses to Texas through a subsidy scheme, giving companies taxpayer-funded grants for the promise of job creation in the state.
First, in March of 2012, Apple received a $21 million commitment from the state for its Austin computer manufacturing facility — presumably the same one that will now manufacture the Mac Pro.
The second grant was a $25 million award for expansion of the company’s Williamson County campus in December 2018.
Total, Apple promised to create 7,635 jobs between the two projects with a “capital investment” of over $700 million.
Apple currently has a market cap of $1 trillion. That’s more than the individual GDP of 183 countries and roughly 1 percent of the entire planet’s GDP.
According to Apple, the manufacturing of the Mac Pro will begin shortly.
Brad Johnson is an Ohio native who graduated from the University of Cincinnati in 2017. He is an avid sports fan who most enjoys watching his favorite teams continue their title drought throughout his cognizant lifetime. In his free time, you may find Brad watching and quoting Monty Python productions.