Apple Watch, AirPods Will Still Reportedly Face China Tariffs

While tariffs affecting Apple products such as iPhone and Mac laptops will be delayed until December, that's not the case for Apple Watch, AirPods and HomePod.


Several Apple products, including the Apple Watch, will not be spared from an additional 10 percent tariff on products from China that takes effect Sept. 1, according to a report.

The U.S. government trade representative announced Tuesday that tariffs on certain products, including smartphones and laptops, will be delayed until at least Dec. 15.

[Related: Apple CEO: Mac, iPad Businesses Are ‘Very Strong,’ iPhone Sees ‘Significant Improvement’]

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While good news for Apple's iPhone and MacBook laptop businesses, Reuters reported that this delay will not apply to the Apple Watch wearable--nor to Apple's AirPods wireless earbuds and HomePod smart speaker.

Those products will still see a 10 percent tariff as of Sept. 1, Reuters reported, as final assembly of nearly all Apple products is carried out in China.

Apple did not immediately respond to CRN's request for comment Tuesday afternoon.

Cupertino, Calif.-based Apple saw surging growth in its Wearables, Home and Accessories business during its fiscal third quarter, ended June 29. Quarterly revenue rose 48.2 percent year-over-year to $5.53 billion in the category, which includes Apple Watch, AirPods and HomePod.

That growth in Apple's Wearables, Home and Accessories unit comes as the company's iPhone business continues to slip. Revenue sagged for the third straight quarter in Apple's fiscal Q3, down 11.8 percent to $25.97 billion, from the same quarter a year before.

Previously, Apple had been among the U.S. device makers speaking out against the proposal for additional tariffs on devices, saying the move would raise prices and divert resources from R&D.

The office of the U.S. Trade Representative said Tuesday that while new tariffs are taking effect for some products on Sept. 1, "certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent."

Those products include "cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing," the office said in a news release.

The tariff on those products will now be delayed until Dec. 15, and "USTR intends to conduct an exclusion process for products subject to the additional tariff," the office said.

Still, even with the news on the Apple Watch and other devices facing tariffs, Apple's stock price closed up 4.2 percent for the day, reaching $208.97 a share.