Trump's Prices in China Could Boost Prices on Apple Watches, Sonos Speakers and More

Last June, President Trump promised Apple CEO Tim Cook that the next $ 200 billion of tariffs on Chinese products would not apply to iPhones.

But, it turns out that the Trump administration did not extend this protection to all Apple devices.

Reuters reported today that the original Apple Watch as well as some health trackers and smart speakers from Fitbit and Sonos, were subject to new tariff codes targeting products made in China, will take effect in September.

United States Customs and Border Patrol Officers Rank Bracelets Fitbit Charge Charge HR and Surge ; Sonos Play: 3 Reading: 5 and SUB intelligent speakers; and the Apple Watch as "data transmission machines" that can benefit from tariffs of 10%.

It is not yet clear what criteria customs officers have used to designate these specific models. The Apple Watch 2 and Apple Watch 3 for example, do not evaluate the same classification as their predecessor. So, for now, they will not have the same import costs.

Sonos, on the other hand, had his flagship intelligent speaker, the Play: 5, distinguished.

"The imposition of tariffs and other trade barriers, as well as trade retaliatory measures, could force us to increase the prices of our products and adversely affect our sales," said Sonos at the beginning of the month.

Apple and Fibit could very well adopt a similar position and raise the prices of these specific devices to offset the tariffs. The Apple Watch Series 1, which costs $ 249 for a new model, could end up costing $ 25 more.

These rates are not yet fixed. Currently, the tariff code has entered its public comment phase, giving these technology companies the time to advocate for their devices to be removed from the list of data transmissions.

If that does not work, industry experts told Reuters, Apple, Fitbit and Sonos might request exclusions after the tariffs come into effect, or try to reclassify the devices under a different and cheaper tariff code.

If none of this works, however, these companies may choose to abandon these older models and seek to develop new devices. Those who will abandon any technology that could turn them into "data transmitters".

Via Engadget