The US exempts Apple’s parts tariffs

The US exempts Apple's parts tariffs

US media said that the Trump administration has approved 10 tariffs on Apple’s imports from China, including power and logic boards. They are included in the $200 billion Chinese goods that began to impose tariffs in September 2018.

According to the US “Wall Street Journal” website reported on September 20, the US Trade Representative Office approved on September 20th Apple’s “Miao Control Mouse 2” “Miao Control Board 2” and a variety of internal parts tariff exemption applications. The exemption period is from September 2018 to August 2020. The United States will refund the tariffs already imposed. The above exemption does not apply to other Apple products that will be subject to tariffs later this year, such as Apple Watch, iPhone or AirPods, but the tech giant may seek more exemptions in the future.

The report said that the total amount of the exemption is still uncertain. These parts imported from China will be subject to a tariff equivalent to 25% of their value, and this tax rate is scheduled to increase to 30% from October 15.

According to the Office of the US Trade Representative, Apple’s five other tariff waiver applications are still under review, including power data lines and boards.

Apple CEO Tim Cook told analysts at a phone call on July 30 that Apple is seeking a tariff waiver to continue assembling some Mac Pro computers in the United States. Apple has been assembling a Mac Pro computer in the United States since 2013, but the various components of the Mac Pro are made in China.

Apple says it seeks tariff exemptions for specific products, “because the Apple-designed parts cannot find other sources (for production).”

Just a few days before Cook’s remarks, President Trump issued a tweet saying: “Apple’s Mac Pro parts produced in China will not receive any tariff exemptions or reductions. If it is made in the US, there will be no tariffs! ”

It is unclear whether the tariff exemption approved on September 20 involves the new Mac Pro released by Apple in June this year or the old Mac Pro produced in Austin, Texas since 2013.

According to the report, the US Trade Representative Office has been approving tariff exemptions in a rolling manner for more than a year. Enterprises will not be able to apply for exemption from tariffs imposed on goods worth $200 billion in September 2018 until the end of June.

The US Trade Representative Office approved an application for exemption for more than 400 items on September 20. Other exempted products include some of the most common items for consumers, such as miniature Christmas tree lights and retractable dog chains.

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