Apple backs exemptions for Trump tariffs on Apple Watches, Mac elements

Flextronics Worldwide Apple manufacturing facility workers work on Apple Mac Professional pc meeting in Austin, TX, November 20, 2019.

Tom Brenner | Reuters

Apple filed eight public feedback supporting momentary waivers for tariffs on Apple Watch and Mac Professional elements on Wednesday, in accordance with the U.S. Commerce Consultant’s web site.

The filings are a public step in a course of that would reinstate a government-granted exclusion on 7.5% tariffs on Apple Watch imports and 25% tariffs on Mac Professional elements. Apple’s watch and elements are topic to tariffs as a result of they’re imported from China. Apple’s most vital product, the iPhone, has not been topic to tariffs.

The transfer is a reminder that corporations are nonetheless combating tariffs levied in the course of the Trump administration amid a commerce warfare with China, particularly after most exclusions had been allowed to run out in late 2020 or early this yr.

Completed Apple Watches and a few Mac Professional elements are among the many imports affected. The Apple Watch is a core product for Apple that offered greater than 30 million items final yr, in accordance with Counterpoint Analysis estimates, whereas the Mac Professional is a high-end pc that prices $6,000 or extra.

The U.S. Commerce Consultant mentioned in in October that it could take into account reinstating some tariff exclusions on a case-by-case foundation, significantly if the product can solely be sourced from China. The USTR requested corporations who supported exclusions to reply questions together with whether or not the merchandise may very well be manufactured in america or different overseas international locations that aren’t China.

The ultimate manufacturing of Apple’s merchandise takes place nearly solely in mainland China, though Apple has made efforts to diversify its manufacturing base.

In its submitting about Apple Watch tariffs, Apple mentioned that the product is a “U.S.-designed smartwatch” and that it ought to obtain an exclusion as a result of it’s extensively utilized by shoppers for cell connectivity and well being functions.

Apple mentioned that the watch is “at present accessible from third international locations in restricted portions,” which means that the corporate has examined manufacturing exterior of China.

Apple additionally backs exclusions on seven elements within the Mac Professional, together with trackpads, mice, energy provides and circuit boards. In its filings, Apple mentioned that the elements should not accessible from sources exterior of China, and are difficult and made to order.

The Mac Professional is the one pc Apple assembles in america. A contractor manufactures the Mac Professional desktop pc exterior of Austin, Texas. Apple CEO Tim Prepare dinner took then-president Donald Trump on a tour of the ability in 2019.

Apple’s eight feedback had been amongst over 1700 entries filed to the USTR since October. Different know-how corporations together with Google, Intel, and Sonos additionally weighted in on tariff exclusions, in accordance with the USTR web site.

An Apple consultant declined to remark.

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