Apple Asks US Govt. For More Tariff Exemptions

Apple Asks Trump For More Tariff Exemptions

Apple has asked the President Donald Trump administration for more tariff exemptions on products that come from China, according to reports.

The company is asking for specific relief on parts for the iPhone, AirPods, Apple Watch and parts for other products. The current tariff level is at 15 percent.

Apple has previously asked for, and gotten some, but not all, of the exemptions it wanted. The Trump administration gave the company 10 waivers, even after saying it wouldn’t do so. However, the remaining waivers were not approved.

Apple has requested more. The 11 new queries were sent to the U.S. Trade Representative’s office. Other products affected include the HomePod, Beats accessories, and other components like batteries for MacBooks and iPhones.

The company said it couldn’t find any source for the products outside of China that would meet the demand for products in the United States.

The decisions on exclusions are based on certain criteria: whether a product is only available in China; if it is strategically necessary or related to Chinese industrial programs; or whether the tariffs will “cause severe economic harm” to the company, according to Bloomberg.

Despite the U.S.-China trade war and increased competition from Huawei, Apple’s revenue losses in China have been tapering off.

Net sales in China reached $11.13 billion in the fourth quarter, a year-on-year decline of 2.4 percent. In June, the decline was 4.1 percent, and in March, 21.5 percent.

Analysts cautioned that without a 5G phone available yet, Apple could be looking at more declines as China changes over to the higher-speed networks.

On an earnings call on Wednesday (Oct. 30), Apple CEO Tim Cook said there were a number of reasons for the uptick, pointing to reduced trade tensions and new products being “extremely well received” in China.

“The things that we’ve done from a pricing and monthly payments point of view and trade-in — getting the trade-in program up and running — all of these things have had moved the dial,” Cook said.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.