Apple Seeks Tariff Relief on Apple Watch and Mac Pro Parts

BY Anu Joy

Published 2 Dec 2021

This Wednesday, Apple filed eight public comments seeking temporary relief from tariffs on the Apple Watch and Mac Pro parts. With this move, the company is trying to reinstate an exclusion on 25 percent tariffs on Mac Pro components and 7.5 percent tariffs on Apple Watch imports.

Apple Watch parts are imported from China; hence they are subjected to tariffs. The company, in its filing about Apple Watch tariffs, tried to make a case for itself by saying that the product is designed in the US. Furthermore, it added that since the device is used widely for health applications and mobile connectivity, it should be granted exemption.

In its filings, Apple also asked for exclusion for seven Mac Pro components, which includes power supplies, circuit boards, trackpads, and mice. The iPhone maker noted that these components are not available outside China, and are made to order. The company also highlighted that the final assembly of the Mac Pro is done in the US.

Back in October, the U.S. Trade Representative (USTR) said that it would consider reinstating some tariff exclusions on a case-by-case basis. It would think of making an exception if the product can only be procured from China. The USTR also questioned companies whether the products and parts could be manufactured in the US or any other foreign countries (except China).

Previously, in 2019, Apple had sought exemption on tariffs levied on its products. The Trump administration originally denied relief for Mac Pro components in the wake of the US-China trade war. However, the iPhone maker eventually got 10 waivers approved in September that year. But the company’s requests for Mac Pro waivers were denied.

Even if the USTR does grant these exemptions, don’t expect Apple to lower the retail prices on its products. At the end of the day, that money will go straight to the company.

[Via CNBC]