Apple's Watches Excluded From US Tariffs on China Imports

Apple’s Watches Excluded From U.S. Tariffs on China Imports

In a big relief for Apple, US President Donald Trump has allowed Apple Watch to be exempted from import tariffs.

The U.S. Trade Representative exempted the Apple Watch from the tariffs Apple had been paying to import this product from China, where it's assembled. With the agreement, the USA cut the tariffs placed on the Apple Watch in half from 15% to 7.5%.

The Apple Watch was on the September list of goods the Trump administration published related to the 15 percent applicable tax. That included Apple Watch, AirPods, HomePod, Mac mini and Apple Pencil.

Apple requested waivers on these products in November. As per the the latest worldwide quarterly wearable device tracker report, IDC has said that Apple has led the wearable market with 43.4 million units shipment "thanks to its refreshed AirPods, AirPods Pro, and Apple Watch as well as its Beats products spanning multiple price points". And now they've been removed completely for the Apple Watch.

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The company also said it had not identified a source outside of China that is able to meet USA demand for this product in the coming year.

The trade deal signed in December also prevented the US government from putting 15% tariffs on the iPhone, iPad, and MacBooks, which Trump had threatened.

The USTR has in recent weeks granted Section 301 tariff exclusions for certain medical products from China, including medical masks, examination gloves and antiseptic wipes.

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