“The devices have all been determined by U.S. Customs and Border Patrol officials to fall under an obscure subheading of data transmission machines in the sprawling list of U.S. tariff codes. And that particular subheading is included in the more than 6,000 such codes in President Donald Trump’s most recent round of proposed tariffs released earlier this month,” Nellis reports. “That $200 billion list of tariffs is in a public comment period. But if the list goes into effect this fall, the products from Apple, Fitbit and Sonos could face a 10 percent tariff.”
“The specific products listed in customs rulings are the original Apple Watch; Fitbit’s Charge, Charge HR and Surge models; and Sonos’s Play:3, Play:5 and SUB speakers,” Nellis reports. “The New York Times has reported that Trump told Apple CEO Tim Cook during a meeting in May that the U.S. government would not levy tariffs on iPhones assembled in China, citing a person familiar with the meeting.”
“It is possible that the products from Apple, Fitbit and Sonos no longer fall under tariff codes in the $200 billion list, trade experts said. The codes applied to specific products are only public knowledge because their makers asked regulators to rule on their proper classification. And some of the products have been replaced by newer models that could be classified differently.”
Read more in the full article here.
MacDailyNews Take: The original Apple Watch was replaced by Series 1 and Series 2 on September 16, 2016. Currently, Apple Watch Series 3 is the premier model and is soon to be supplanted by Series 4.
This is a non-story as far as Apple Watch is concerned. Reuters likely included “Apple Watch” in their headline and throughout their story, from the very first sentence on, in order to draw eyeballs, not mentioning that the “Apple Watch” being discussed was discontinued in 2016 and not stating that it’s “possible” it will “no longer fall under tariff codes” until paragraph number 10. Reuters didn’t bury the lede; there was no lede.
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
What trade war? Markets shrug off US-China dueling tariffs – July 6, 2018