Big daddy Trump has told Apple that the US Government will not grant the company a tax relief on tariffs on parts made in China for the Mac Pro.
Apple had asked if they could have 25% of the tariffs waived off a total of 15 parts, but not only President Trump deny the request, but had also urged Apple to build their own plants in Texas.
Image credit: The Hill
This has every little bit to do with the ongoing trade war between the USA and China – and one big reason why the trade war exists have something to do with Trump’s iconic ‘Make America Great Again’ election campaign slogan.
President Trump aims to make USA an even bigger economic powerhouse – and part of his strategy to achieve that goal is to reduce the outsourcing of businesses to foreign countries (like China) and have companies work locally, providing jobs to Americans and all that jazz.
Image credit: JOYI News
Hence the whole trade war and the issue Apple have at hand – the company outsources to China – as many gargantuan companies do – to cut cost. Reuters had quoted President Trumps as saying “You can build your plants in China, but when you send your products into the United States, we’re going to tariff you”.
So his method is clearly to price out manufacturing and production costs for companies so they eventually have to bring their businesses back to The States to receive any kind of tax cuts, if any.
What this means for us consumers, is pricier goods, especially those coming from American companies that rely on their outposts in China to produce said goods. Until Apple finds some middle ground to balance production cost and end-product pricing, we can expect ridiculous prices for their goods for the foreseeable future ($999 Mac Pro stand anyone?).