With the U.S. and China still locking its horns in a tariff-for-tariff battle, consumer technology giant Apple is finding ways to duck Chinese tariffs and one way is to build its vaunted desktop computer, the Mac Pro, deep in the heart of Austin, Texas.
This shift to building the Mac Pro domestically comes as tariffs on China are hurting the bottom line, particularly for its bread-and-butter product, the iPhone.
Furthermore, per a CNBC report, “Apple over the weekend received federal product exclusions, the company confirmed, which enabled it to import some parts it needs for the Mac Pro without paying import tariffs. Apple said the new Mac Pro models include over two times more American-made components than previous models.”
“The Mac Pro is Apple’s most powerful computer ever and we’re proud to be building it in Austin. We thank the administration for their support enabling this opportunity,” said Apple CEO Tim Cook in a statement.
The move also marks Apple relenting to U.S. President Donald Trump’s desire to keep Mac Pro production in the states.
“Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China,” Trump said in a tweet. “Make them in the USA, no Tariffs!”
“A man I have a lot of liking for and respect is Tim Cook, and we’ll work it out, I think they’re going to announce that they’re going to build a plant in Texas, and if they do that I’m starting to get very happy, okay,” Trump added.
Cook essentially agreed with Trump’s volition, saying that Mac Pro production will stay in the U.S.
“In terms of the exclusion, we’ve been making the Mac Pro in the U.S. We want to continue doing that,” Cook said on a call with analysts. “We’re working and investing currently in capacity to do so because we want to continue to be here.”
Cook With Apple
Here are three ETFs with the heaviest weightings of Apple stock:
- Technology Select Sector SPDR ETF (NYSEArca: XLK)–17.10%: tries to reflect the performance of the Technology Select Sector Index, which is comprised of technology and telecom sector of the S&P 500. The ETF includes companies from technology hardware, storage, and peripherals; software; diversified telecommunication services; communications equipment; semiconductors and semiconductor equipment; internet software and services; IT services; electronic equipment, instruments and components; and wireless telecommunication services.
- Vanguard Information Technology ETF (NYSEArca: VGT)–15.8%: tries to reflect the performance of the MSCI US IMI Information Technology 25/50 Index, which includes information technology stocks in the MSCI US IMI 25/50.
- iShares U.S. Technology ETF (NYSEArca: IYW)–15.79%: reflects the performance of the Dow Jones U.S. Information Technology Index, which includes all tech sector picks in the Dow Jones U.S. Index. Due to the Dow Jones’ classification of information tech names, healthcare technology stocks may be included while payment technology stocks are excluded.
For more market trends, visit ETF Trends.