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

Ruben Fields
March 26, 2020

The White House's trade negotiating office assured US medical supplies importers that it will not impose import tariffs on Chinese products such as ventilators, oxygen masks and nubilators during the coronavirus (COVID-19) pandemic.

Apple's plea to have the Apple Watch exempted from USA 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.

Apple Watch tariffs are a side effect of United States vs. These tariffs were reduced by 50 percent last month as part of an initial trade deal with Beijing.

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Apple argued in its request a year ago that its product, as a consumer electronic device, should be exempted because "it is not strategically important or related to "Made in China 2025" or other Chinese industrial programs".

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 claimed that it was unable to find a source outside of China to meet Apple Watch production demand in 2020. The Cupertino-based tech giant garnered a 31.7% market share at the end of 2019 and delivered an year-over-year growth of 121.7%. 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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