Taxes from the United States to China … Do they really affect Apple?

Estados Unidos dejó fuera del mapa al Applewatch y otros dispositivos de consumo en la última ronda de aranceles sobre productos chinos, según una lista de productos publicados por el Representante de Comercio de Estados Unidos (USTR).

Wednesday, September 26, 2018

The administration of President Trump sparked protests from technology companies earlier this year because of tariffs imposed on China’s products, but the final list of USTR’s taxable devices avoids many brands and consumer products. Such is the case of some Apple products.

The United States left the Applewatch and other consumer devices off the map in the latest round of tariffs on Chinese products, according to a list of products published by the United States Trade Representative (USTR).

But the parts for the computer servers, the network equipment that powers the data centers “in the cloud” and the Internet-based services now face an embargo, as do some of the parts of the machines used to make semiconductors .

US President Donald Trump intensified his trade war with China, imposing tariffs of 10% on Chinese imports for approximately US $ 200 billion and warned that if China takes retaliatory measures against US farmers or industries they will immediately pursue the third phase, which is an imposition of tariffs on approximately $ 267 billion USD of additional imports.

The iPhone was not among the “wide range” of products that Apple told regulators would be affected by the round of $ 200 billion tariffs in a letter of comments on September 5 for trade officials. Apple feared for its Apple Watch and wireless AirPods, but both were left out of the announced list.

The new round of tariffs takes effect this September 24 at a level of 10% and will increase to 25% on January 1, 2019. However, if Trump expands tariffs to an additional value of $ 267 billion of goods, then almost All Chinese imports will be affected, including the iPhone, along with all other smartphones.

The new list also leaves Fitbit Inc.’s fitness trackers out, the company had said in a comment letter that the rates would jeopardize its own investment in the United States.

However, some products that help computer networks to operate, such as routers, will remain in the new list. That could affect smaller technology companies, such as Eero, a start-up company that manufactures home routers, which asked for fee waivers. In total, pardons were granted to approximately 300 categories of products, including some non-technological consumer devices, such as bicycle helmets and baby seats.

Apple had said that US tariffs would affect the prices of a “wide range” of Apple products, including its watch, they mentioned: “Our concern with these rates is that the US will be the hardest hit, and that will result in lower growth and competitiveness in the US and higher prices for American consumers,”Apple said in a letter commenting on the proposal.

After Apple’s comments, Trump said in a tweet on September 8, “Make your products in the United States instead of China, start building new plants now.”

A group of technology companies, including Cisco Systems Inc., Dell Technologies Inc., Hewlett-Packard Enterprise Co and Juniper Networks, requested that many of those items be discarded, but remained on the list with only a few exceptions, such as a group of networks and related accessories.

We know that the United States seeks to “take care” of its interests however with all these new impositions the consumer is the one that is being most affected by having to cover that overprice at the time of purchase. As a company specializing in foreign trade, we are constantly learning about the changing regulations and tariffs depending on the country we are dealing with, and we keep our clients informed so that they can adjust their operations and mitigate the effects.