Apple Watch and FitBit could be hit with Trump's tariffs

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Sharecast News | 20 Jul, 2018

The Apple Watch, FitBit and other accessories assembled in China could be affected by the latest round of US tariffs on $200bn of Chinese products, according to government filings.

Gadget makers will not be spared from the tariffs which could lead to price hikes on products that millions of consumers use daily. The US Customs and Border Patrol officials have determined what devices fall under a subheading of data transmission machines in the list of US tariff codes and is included in Donald Trump’s most recent round of levies.

If the tariffs come into effect in autumn Apple, Fitbit and Sonos could face a 10% tariff. The specific products listed in customs rulings are the original Apple Watch; Fitbit's Charge, Charge HR and Surge models; and Sonos's Play:3, Play:5 and SUB speakers.

The New York Times reported that companies affected had a few options to try and avoid the tariffs. The first would be to get the code dropped from the list during the public comment period, apply for an exclusion or try to get the product classified under a different code not on the list.

The threatened tariffs would be a significant escalation of the U.S.’s trade war with China, as the most recent tariff round only covers $34bn worth of goods. China already filed a complaint with the World Trade Organization the $200bn tariff plan.

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