US to spare the Apple watch, many gadgets of the new Chinese tariffs

(Reuters) – The United States will spare Apple Watch and other consumer gadgets in the latest round of tariffs on Chinese products, said Monday a senior administration official.

The administration's proposal for $ 200 billion in product prices sparked protests from technology companies earlier this year, but the final list of taxed devices described by the official avoids many of the big names and products in the industry. consumption.

The iPhone was not part of the "broad range" of products that Apple said the regulators would be affected by the $ 200 billion price series in a September 5 comment letter to business managers.

But Trump, in a statement announcing the new tariff cycle, warned that if China took retaliatory action against US farmers or industries, "we would immediately pursue the third phase, namely tariffs of US $ 50,000. about 267 billion additional dollars. "

And if the Trump administration applies an additional series of tariffs of $ 267 billion, almost all Chinese imports, the iPhone, as well as all other smartphones, will probably be included in the list. Apple shares fell 0.7 percent to $ 216.29 after hours.

The new tariff series will come into effect on September 24 at 10% and will reach 25% by the end of the year.

Watches and smart devices that use Bluetooth wireless communications, the technology behind Apple's AirPods, and other smartphone-enabled products will be excluded from the new price list.

In a previous $ 50 billion price series, the Trump administration withdrew flat-panel TV proposals for the final list in June.

The new list would spare Fitfit Inc.'s fitness trackers, which said in a letter of comment to regulators that the rates would jeopardize its own investments in the United States. Fitbit shares rose 0.6% to $ 5.48 after hours.

However, some products that help computer networks run, such as routers, will remain on the new list, the official said. This could affect small technology companies such as Eero, a start-up that manufactures home routers and has asked to be exempted from tariffs. In total, about 300 categories of products were selected, including non-technological consumer devices such as bicycle helmets and baby car seats.

Despite the changes, the new tariffs will still cover about $ 200 billion of additional Chinese goods, as part of a growing trade dispute between the two largest economies in the world.

Apple and Eero have not responded to a request for comments from Reuters, and Fitbit declined to comment. Apple CEO Tim Cook had dinner with US President Donald Trump last month, but gave no details on the talks.

Apple said US tariffs would affect the prices of a "wide range" of Apple products, including its watch, in a letter commenting on the administration's proposals earlier this month.

"Our concern about these tariffs is that the United States will be the hardest hit, which will result in lower US growth and competitiveness and higher prices for US consumers," Apple said in a letter. commenting on this proposal.

After Apple's comments, Trump said in a tweet that there was an "easy solution" for Apple to avoid tariffs. "Make your products in the United States instead of China. Start building new plants now, "he tweeted on September 8th.

Bloomberg reported earlier Monday that Apple watches would not be subject to customs duties in the new round.