Trump Administration Grants Tariff Exemption for Apple Watch Made in China

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Seulgina Cho] Apple has been granted a tariff exemption by the U.S. government for Apple Watches produced in China.

On the 23rd (local time), according to economic media CNBC and others, the U.S. Trade Representative (USTR) recently approved Apple's request for a tariff exemption on its smartwatch, the Apple Watch. As a result, Apple will not have to pay the 7.5% tariff when importing finished Apple Watch products from China into the United States.

Apple products made in China, including the Apple Watch, have been subject to tariffs imposed by the U.S. government since September last year. President Trump initially set the tariff rate at 15%, but it was reduced to 7.5% in February this year.

Previously, in November last year, Apple requested tariff exemptions from the USTR for Chinese-made products such as the Apple Watch, iPhone repair parts, iMac computers, and HomePod speakers. At that time, Apple argued that these products were consumer electronics that were not strategically important or linked to China’s industrial strategies such as "Made in China 2025." Apple also appealed that it could not find alternative suppliers for the Apple Watch to meet U.S. demand.

Along with this, Apple lifted the online purchase limit of two units per person (for the same model). Earlier, Apple had announced this policy last week for some models including the iPhone, after closing offline stores outside China due to the spread of COVID-19 and amid concerns about the gray market (selling imported goods without the manufacturer’s permission). However, restrictions on the iPad Pro and Mac models remain in place.

IT specialized media 9to5Mac commented, "It is strange that the purchase restrictions were lifted so quickly after being applied," but added, "The situation is unpredictable due to the impact of COVID-19. It could be because supply chain issues have been resolved or demand has dropped faster than the company expected."

This content was produced with the assistance of AI translation services.