In a big relief for Apple, US President Donald Trump has allowed Apple Watch to be exempted from import tariffs. And now they've been removed completely for the Apple Watch. Or, Apple could have consumers pay for the tax by raising the price of the device by the amount of the tax.
Apple argued in its request past year that its product, as a consumer electronic device, should be exempted because "it is not strategically important or related to "Made in China 2025" or other Chinese industrial programs".
Apple was notified on Friday that the Apple Watch was excluded from tariffs, according to Bloomberg.
Apple argued it shouldn't be charged an import fee for the Apple Watch which it brings in from China, saying the wearable wasn't "strategically important", nor related to Chinese initiatives such as "Made in China 2025", which are created to encourage manufacturing in the country. Apple also pointed out that it could not find a source outside of China that can meet US demand for this product over the next year.
Apple's wearables and accessories business, which includes Apple Watch, AirPods and HomePod, raked in revenue of $24.5 billion in its fiscal year ended September 2019, accounting for about 9.4% of its total sales.
Apple CEO Tim Cook said in October that he expected the United States and China to solve their trade problems.
Oil Prices Up on Drop in Supply
Vitol said refineries have so far cut about 7 million bpd, a figure the company expects to rise further as storage fills up. Brent crude LCOc1 was trading up 65 cents, or 2.4%, at $27.80 a barrel after earlier rising to a high of $28.29.