The Apple Watch and other devices could be hit with a 10% tariff in the U.S. later this year

The Apple Watch and other devices could be hit with a 10% tariff in the U.S. later this year
Saving up for the Apple Watch? You might need to put aside a few more bucks if you want to purchase the smartwatch. According to a new report published today, a number of popular tech devices are in the crosshairs of the U.S. as it seeks to add tariffs on $200 billion of imports from China. Rulings from the U.S. Customs and Border Protection indicate that the popular Apple timepiece, certain Fitbit models, and some Sonos smart speakers are considered to be included in the sub heading of data transmission machines.

As it turns out, the code for that sub-heading is among 6,000 representing products imported from China that could be slapped with tariffs in the states. President Donald Trump wants the U.S. to impose tariffs on these imports in order to reduce the country's trade deficit with China. Among products facing a 10% tariff this fall are the Apple Watch, the Fitbit Charge, Charge HR and Surge, and Sonos’s Play:3, Play:5 and SUB smart speakers. Once the tariffs are announced, the manufacturers can try to get the code that their products fall under removed from the tariffs list. This is attempted during the public comment period. Another option is to ask for an exclusion. Or, the companies can try to get their devices classified under a different code that is not on the tariffs list.

You might be wondering how products from three American companies like Apple, Fitbit and Sonos could be the subject of import tariffs on Chinese goods. That is because the trio design their products in the U.S., but have them assembled in China. Apple uses contract manufacturer Quanta to produce its smartwatch, and when the Apple Watch is shipped from China into the U.S., it can be slapped with import tariffs.

So far, smartphones and tablets have escaped being listed by the Customs Department. Last month, we told you that according to The New York Times, Apple CEO Tim Cook was assured by President Trump that the iPhone would be exempt from any tariffs. That report was later denied by White House trade advisor Peter Navarro.

Other smartwatches and smart speakers could be included in the $200 billion of Chinese imports that face a tariff. The only reason that Apple, Fitbit and Sonos products were mentioned publicly, is that the trio requested that regulators re-evaluate the products listed to see if they should be in a different classification. There is also the possibility that the devices we named are no longer on the list.

source: Reuters



1. p51d007

Posts: 705; Member since: Nov 24, 2013

Boo hoo. Level the playing field and it won't be a problem. These companies are using pretty much slave labor in China to produce their products. China's entire economy, is based on using it's people, for the "state" as THEY see fit. out of the 600 billion or so people in China, a small minority have any wealth or power, and even those that do, are subject to the whims of "the state".

3. toukale

Posts: 652; Member since: Jun 10, 2015

If you are going to make such a statement, at least educate yourself. China has 1.2 billion people, about 300 million of those people are at least in the Middle or upper middle class. That is the size of the entire US population. Here are some stats for you. China is the leading country for luxury goods spending, follow by Japan, USA is third. People needs to stop repeating those bs propaganda. Yes, China does have a large portion of its population that is poor, but so are every country. It just so happen their numbers are larger because of its sheer size of people. Obviously going the route their went was the quickest and best way to try to get jobs for all those people. Its not perfect, but show me a country that has a perfect system.

4. TechNeck

Posts: 656; Member since: Aug 29, 2014

Stop watching Fox News. That's all I'm going to say about your comment. On the other hand, Trump really needs to stop trying to induce trade wars. He's going to cause a lot of workers to lose their jobs and if he continues, it will most likely cause a recession.

6. Framm

Posts: 8; Member since: Jun 19, 2016

I guess you are fine with the US paying a tariff when we export our products while we sometimes didn't even charge or one or maybe charged a fraction of what other countries charged us, a lot of us are tired of other countries taking advantage of us, either we are equal or they can go an F$% themselves and you should also stop watching CNN or MSNBC

8. cmdacos

Posts: 4267; Member since: Nov 01, 2016


9. Macready

Posts: 1824; Member since: Dec 08, 2014

Let's rephrase that. America's entire economy is built on cheap labor abroad. The level of consumption has reached levels that can't be provided by its own people at a certain work level, let alone at a price that can be afforded on average. You can't blame another country for everything you willingly signed up for or asked for. Don't like it, move production back and pay the price.

11. cmdacos

Posts: 4267; Member since: Nov 01, 2016

Well said

12. darkkjedii

Posts: 31324; Member since: Feb 05, 2011

600 billion lol. Dude, dude, dude...did you really post that?

2. yyuu1000

Posts: 260; Member since: Jul 26, 2012

im right in the market for a new watch

5. drunkenjay

Posts: 1697; Member since: Feb 11, 2013

for the delicious price of 1k

7. phonearenaviewer

Posts: 56; Member since: Jan 22, 2014

Good maybe will force these companies to return to US and provide jobs. They all left because of the corrupt politicians taxing them to oblivion to line their own pockets.

10. epdm2be

Posts: 824; Member since: Apr 20, 2012

"...Once the tariffs are announced, the manufacturers can try to get the code that their products..." Why not "try" to just build the damn things in the US? Or is that too much to ask?

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