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Apple Watch Reportedly Will Avoid Proposed Tariffs

A report indicates that tariffs on goods made in China will spare electronics such as the Apple Watch and AirPods.

The Trump administration's proposed tariffs on $200 billion worth of imports from China will not impact the Apple Watch or Apple AirPods, according to a report Monday.

The tariffs could reportedly be announced as soon as Monday.

[Related: Here's What To Know About Apple's Four Newest Products]

A Bloomberg report states that a product code covering the Apple Watch and AirPods is not included on a list of products that will be subject to a 10 percent tariff.

CRN has reached out to Apple for comment on the report.

In a letter to the U.S. Trade Representative, Apple previously wrote that the Apple Watch and AirPods would be among the products covered in whole or via certain components by the tariffs.

The company also wrote that Apple-designed components and custom tooling for its U.S.-based manufacturing and repair facilities, testing equipment for its development labs, and IT equipment for Apple's U.S.-based data storage would be affected by the tariffs.

Apple said that the tariffs would raise the cost of doing business in the U.S., increase prices of its products for consumers and give a boost to foreign competitors.

Final assembly of Apple products, including the iPhone, is carried out in China. Reports suggest that Apple has done a small amount of manufacturing in the U.S. in recent years, including the manufacturing of Mac Pros in Texas and some iMacs in California, but on the whole Apple hasn't had major manufacturing in the U.S. since 2004.

In a Tweet earlier this month, President Donald Trump wrote that "Apple prices may increase because of the massive Tariffs we may be imposing on China."

"But there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China," Trump tweeted. "Start building new plants now. Exciting!"

Last week, Apple unveiled the next generation version of its smartwatch—the Apple Watch, Series 4—with larger display sizes and new health-tracking features.

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