President Trump is rejecting Apple's attempt to exempt Mac Pro parts from US tariffs on Chinese imports.
"Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China," Trump tweeted on Friday. "Make them in the USA, no Tariffs!"
Last Thursday, Apple filed requests with the US Trade Representative's office to exempt the company's computer parts from the tariffs, which were imposed in September. The components include an "aluminum" frame for what appears to be a Mac Pro, which is slated to launch this fall.
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! — Donald J. Trump (@realDonaldTrump) July 26, 2019
Apple hasn't commented on the tweet. But according to Bloomberg, the company is preparing to move Mac Pro production from Texas to China, where Apple's contract manufacturers also produce the iPhone.
Speaking to the press from the Oval Office later in the day, Trump reiterated his call for Apple to build its plants in the US and said he has "a lot of liking for and a respect for...Tim Cook."
"We'll work it out," he told reporters, without elaborating.
For now, the Trump administration has only imposed tariffs on computer components coming from China—not fully assembled PCs or smartphones. This means the Mac Pro is spared from import duties, but replacement parts are not.
This could all change. The Trump administration is currently considering tariffs on all remaining Chinese imports as the White House remains locked in a trade war with Beijing.
The tech industry has been urging the Trump administration to call off its tariff threat, saying it would ensnare all consumer electronics, including laptops and video game consoles. Last month, Apple was among the companies that sent letters to the US Trade Representative's office warning that additional tariffs would also force tech vendors to raise prices on their products.
Trump, however, has encouraged companies, including Apple, to bring their manufacturing back to the US. "I told Tim Cook (Apple's CEO), a friend of mine, make your product in the United States. Build those big, beautiful plants that go on for miles it seems," Trump said in January. "China is the biggest beneficiary of Apple, more than us."
Apple contracts its manufacturing in China to Taiwanese companies such as Foxconn, which can employ hundreds of thousands of local Chinese workers at relatively low wages. Foxconn is opening a plant in Wisconsin, but that facility—which will not make Apple products—has sparked controversy for getting a huge tax break and coming up short on the 13,000 jobs it was supposed to create.