Apple (AAPL -2.41%) has received a waiver, excluding its smartwatch from tariffs imposed on Chinese imports.
The U.S. Trade Representative said on its website Apple’s smartwatch can be imported from China without getting hit with a 7.5% duty tax. The Apple Watch was on a list of products that were facing tariffs that were originally going to be 15% but was later halved to 7.5%.
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When applying for the exemption, Apple said it tried but failed to identify a source outside of China that could meet U.S. demand for the product in the next year. It also said the smartwatch is “not strategically important or related to ‘Made in China 2025’ or other Chinese industrial programs.”
Made in China 2025 is the country’s ambitious plan to have Chinese companies control the local market as well as the global market in several industries including robotics, 5G, and artificial intelligence. The proposal has raised the ire of the White House which has been embroiled in a trade war with China for some time.
In addition to the Apple Watch, the iPhone maker has sought exemptions for its HomePod, AirPods, and Mac computers. It also wants iPhone parts to be excluded from the tariffs. By granting Apple an exclusion for the Apple Watch, it makes it cheaper for the company to import the device.
This isn’t the first time Apple has dodged a bullet on tariffs. In December the White House and the U.S. reached a Phase One deal that prevented new tariffs from going into effect that would have impacted the iPhone, iPad, and MacBooks.
