Apple Watch excluded from USA trade tariffs on China

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

Good news for Apple – its Apple Watch is now exempt from Chinese import tariffs

Let's look at an example. Even though they are designed in Cupertino by Apple, the Apple Watch is actually manufactured in China making it eligible to be taxed when imported into the U.S.

In a big relief for Apple, US President Donald Trump has allowed Apple Watch to be exempted from import tariffs. Or, Apple could have consumers pay for the tax by raising the price of the device by the amount of the tax.

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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.

In early 2018, USTR imposed the tariffs pursuant to an investigation it led under Section 301 of the 1974 Trade Act, which allows the assessment of trade remedies to counter any foreign country's "unreasonable" acts, policies and practices found to have denied USA companies "fair and equitable" commercial treatment.

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Apple has previously asked the U.S. Trade Representative (USTR) to be excluded from certain tariffs including the one imposed against the Apple Watch.

Apple's wearables and accessories business, which includes Apple Watch, AirPods and HomePod, raked in revenue of $24.5 billion in its fiscal year ended September 2019, accounting for about 9.4% of its total sales. Apple also said it hasn't been able to find a supplier out of China who can cope with the demand from the USA for the Apple Watch. Talking about the features in the next Apple Watch, the watchOS 7 is expected to add new features to the watch face setting.

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