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

Joanna Estrada
March 26, 2020

Let's look at an example. And now they've been removed completely for the Apple Watch.

The company continues to pay import taxes on AirPods, iMac and other products.

Apple's plea to have the Apple Watch exempted from US import tariffs has been approved, wiping the 15% tax imposed on Apple for products it imports into the United States from its manufacturers and assembly partners in China.

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 US companies "fair and equitable" commercial treatment.

Apple was notified on Friday that the Apple Watch was excluded from tariffs, according to Bloomberg.

Apple said the "Apple Watch" should be exempt because "it is not strategically important nor related to & # 39; Made in China 2025 & # 39; or other Chinese industrial programs". Apple also claimed that it was unable to find a source outside of China to meet Apple Watch production demand in 2020. The timepiece is the most popular watch in the world (not just the most popular smartwatch).

An Apple spokesman said the company had nothing to add to the filing. This means that Apple is no longer taxed on Apple Watch units shipped into the states and the firm's profit margin will improve slightly on sales of the device, which belongs to Apple's strongest growing Wearables, Home and Accessories division.

Other reports by Click Lancashire

Discuss This Article