Apple Dodges Tariffs in Texas

October 7, 2019
Apple Dodges Tariffs in Texas

Apple is moving its Mac Pro production to Austin, Texas, as part of a plan to invest $350 billion in the U.S. economy by 2023.

Apple already has manufacturing locations in 36 states with 9,000 domestic suppliers. The move not only helps Apple to abate the impact of trade tariffs but also to have a product that is made entirely in USA.


Video Spotlight: Mac Pro to be manufactured in Texas


This post is based on the IB Times article, Apple News: Mac Pro Production Moves To Texas To Dodge Tariffs, by Thomas Kira, September 23, 2019, and the YouTube video, Mac Pro to be manufactured in Texas, by Newsy, September 23, 2019. Image source: © McGraw-Hill Education

Discussion Questions:

1. In what ways is Apple’s decision to move its Mac Pro production to Austin, Texas, capacity-related?

Guidance: The move is a capacity-related decision because Apple has to determine what capacity it needs to make Mac Pro using only domestic suppliers and workers instead of outsourcing the assembly processes to China.

2. What are the reasons for Apple to move its Mac Pro production to Austin, Texas?

Guidance: Trade tariffs make it less economical to assemble Mac Pro in China. Apple already has manufacturing locations in 36 states and 9,000 domestic suppliers, and plans to invest $350 billion in the U.S. economy by 2023.

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