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.
The company continues to pay import taxes on AirPods, iMac and other products.
Apple has been given a welcome reprieve on tariffs for the iPhone, iPad and Mac after President Donald Trump agreed to a limited trade deal with China on Thursday.
The phase one agreement means rolling back existing tariff rates on Chinese goods and canceling new tariff rates that would have gone into effect Sunday.
Apple requested exemptions for the import taxes it must pay when bringing many of its products from China. Currently, the Trump administration levies these on Apple Watch, AirPods, iMac and more.
These tariffs went into place in September as Apple got caught up in President Donald Trump’s trade war with China.
New tariffs on imported Chinese products in the escalating U.S. vs. China trade war could cost the average household $1,000 per year, J.P. Morgan Chase claims.
The first round of tariffs went into effect Sunday at 12:01 a.m. They mean that various products, including some Apple devices, are taxed at 15% upon entering the U.S.
President Donald Trump and Tim Apple, err, Tim Cook are BFFs. Well, according to Trump at least.
Describing Cook as a “great executive,” Trump says the Apple CEO isn’t afraid to pick up the phone and call whenever there’s something on his mind. “He calls me, and others don’t,” Trump said, comparing Cook to other execs.
During a Friday-night dinner with Donald Trump, Apple CEO Tim Cook very nearly convinced the president that import taxes planned for iPhone and other products would benefit Samsung.
Apple will pay proposed tariffs on products imported from China, while Korea-based Samsung — Cupertino’s chief competitor — will not.
Not all Apple devices will escape the taxes being levied next month on goods imported from China. The Trump Administration decided to delay tariffs on iPhone, iPad and Mac, but other popular products will still get slapped with a 10% import tax, including Apple Watch, AirPods and HomePod
Shares of Apple jumped over 4% after iPhones were removed from the list of items that will be hit with import taxes at the beginning of September.
However, tariffs could still go into effect for phones, Macs, and other Apple products in mid December.
President Donald Trump’s newly announced China tariffs put a real hurting on Apple’s stock price. But don’t worry, because investors think Apple will weather the storm — and advise that you hang onto your AAPL holdings for now.
Heck, you could even buy more.
Don’t panic: the introduction of new import tariffs by President Trump isn’t going to make the next iPhone even more expensive!
That’s the message from reliable Apple analyst Ming-Chi Kuo. In his latest note to client, Kuo says that he thinks Apple will absorb the cost of any tariffs, rather than pass them on to customers.
