US-China trade war: Apple receives bad news on tariffs

Apple must pay tariffs on five Chinese-made parts for its new Mac Pro computer, the U.S. Trade Representative said Monday evening.

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The tech giant had hoped to receive exemptions from the 25 percent tariffs on parts including a power adapter and charging cable.

The U.S. Trade Representative said 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.”

Monday’s decision comes after Apple announced last week it would build its new Mac Pro in Austin, Texas. The U.S. Trade Representative three days earlier granted Apple tariff exemptions on 10 of the 15 requests it had made after the tech giant wrote a letter outlining its concerns.

“Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers,” the letter said.

President Trump has repeatedly told Apple to build its products in the U.S. if it wants to avoid the tariffs.

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“Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive,” the president tweeted last month. “Make your products in the United States instead of China. Start building new plants now.”