Apple and AirPods will be spared from the next round of rates on Chinese goods, according to Bloomberg. Although originally covered by early $ 200 billion escalation of President Donald Trump's trade war with China, sources told Bloomberg that the product key that includes these two Apple devices, as well as competing devices, will be exempt from rates.
Apple Series 4 is spared from the rates
Apple had warned in a SEC that it could be affected by these latest rates, which impose a 10% tax on a wide range of products made in China. The final list is not released from this writing, but is expected on Monday. President Trump told reporters that it would be released on Monday after the closing of trading.
Fitbit is one of those competitors that also fall under this exemption.
In addition to alerting investors that the company could be affected by these rates, Apple also wrote to the US trade representative Robert Lighthizer with the request not to impose tariffs.
"Rates increase the cost of our US operations, divert our resources and penalize Apple in comparison with foreign competitors," Apple said. "More generally, rates will lead to higher US consumer prices, lower total US economic growth and other unintended economic consequences."
Although the broader message does not appear to have been followed, Apple has managed to free its devices. Bloomberg also noted that Apple CEO Tim Cook had dinner with President Trump and First Lady Melania Trump in August. The former TV expert and current White House adviser, Larry Kudlow, also said that the White House is holding regular consultations with Mr. Cook on economic matters.
"We have often spoken to Mr. Tim Cook, he is a really smart guy and he has given us good advice," said Mr. Kudlow.