Apple Must Pay Tariffs on 5 Mac Pro Components

Last month, Apple confirmed that the new Mac Pro will be manufactured in Austin, Texas. The decision was made possible in part because Apple was granted exclusions from tariffs on certain components sourced from China. However, not all Mac Pro components are tariff exempt.

As Bloomberg reports, Apple has failed to get tariff exemptions on five components used in the Mac Pro, four of which are essential to its operation. All five will incur a 25 percent tariff and therefore could impact either the price Apple charges for the Mac Pro, or the profit margin on each Mac Pro sold.

The five components to incur tariffs include the Mac Pro's optional wheels, the circuit board required for managing input/output ports, the cooling system used for the processor, a power adapter, and a charging cable.

Of the five, the cooling system and circuit board are likely to be the most expensive for Apple to buy and therefore will suffer the most from an additional 25 percent tariff. The lack of exemption is because Apple "failed to show that the imposition of additional duties on the particular product would cause severe economic harm to you or other U.S. interests," according to the United States Trade Representative (USTR).

Seeing as the Mac Pro will have a starting price of $5,999, it seems likely the tariff costs can easily be covered without increasing the price for consumers. However, as the wheels are optional, I'm sure Apple will increase their price accordingly.

It's unlikely Apple will just sit back and accept the tariffs are unavoidable. The company will no doubt continue to look for alternative sources for the five components and eventually could remove them by switching to a non-Chinese supplier.

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