Apple products including the Apple Watch and AirPods may be spared from being subjected to fees stemming from the ongoing Chinese trade war, a report claims, with the product code associated with the devices apparently excluded from the Trump Administration's tariff plans.
A proposal to extend the U.S. government's import tariffs against China to cover $200 billion worth of goods imported to the United States was previously discovered to potentially include a number of Apple products. While previous tariff plans did not affect the company's offerings, the $200 billion proposal covered a long list of product codes, including those that devices including the Apple Watch and AirPods were classified under.
The Trump Administration is expected to release a final list of product codes that would be affected under the proposal, imposing a new 10 percent tariff on affected devices, according to five sources of Bloomberg. That list could be released as soon as Monday.
Two of the report's sources note product codes used for the Apple Watch and AirPods is not included in the list, suggesting Apple's products will continue to avoid being affected by the trade measures. The product code also covers a number of other similar devices, including smartwatches and fitness trackers produced by Apple's competitors.
Other Apple products under the excluded code include the HomePod, Beats headphones, and Apple's AirPort and Time Capsule hardware.
Earlier in September, Apple wrote to U.S. Trade Representative Robert Lighthizer, claiming the tariffs will hit the U.S. the hardest, not China, and would result in "lower U.S. growth and competitiveness and higher prices for U.S. consumers." The letter continued Apple's sentiment from a recent Securities and Exchange Commission filing, declaring the tariffs and "other protectionist measures" could hurt the company financially.
While previously President Donald Trump has assured Apple CEO Tim Cook that the iPhone won't be affected, he has since argued that there is a solution to Apple's tariff woes, namely to move manufacturing from China to the United States.
While Apple may be spared from being affected by the tariffs in the United States, the same cannot be said about its fate with the Chinese government. A report earlier on Monday claims China is considering restricting "sales of materials, equipment, and parts key to U.S. manufacturers" in retaliation the new tariffs, if they are implemented.
Update: The Trump administration slapped China with tariffs on $200 billion worth of goods on Monday, escalating a trade war with the Asian giant, reports The New York Times. As reported, smartwatch and Bluetooth devices were among roughly 300 product lines pulled from the list at the behest of U.S. companies, including Apple.