On Apple Watch, Mac versions, Apple supports exemptions for Trump taxes

According to the U.S. Commerce Department website, Apple filed eight public statements supporting short-term tariffs on the Apple Watch and Mac Pro versions on Thursday. It could offset the government’s offer of 7.5% tax on Apple Watch imports and 25% tax on Mac Pro cars because launches are a public step in a process.

Apple watch and parts are under taxes because they are imported from China. Apple’s flagship product, the iPhone, has not been charged.

The move is a reminder that companies are still struggling with the taxes collected during the Trump administration during the trade war with China, even after most of the exemptions allowed it to end by the end of 2020 or early this year.

Complete Apple watches and some Mac Pro versions are among the importers just outside. The Apple Watch is a major product for Apple that sold more than 30 million versions last year, according to Counterpoint Research Statistics, while the Mac Pro is a high-end laptop worth $ 6,000 or more.

The U.S. Commerce Department said in October that it would consider reversing some price cuts on a case-by-case basis, even if the product could be sourced only from China. USTR asked the companies supporting the exemptions to answer questions with whether the products could be manufactured in the United States or other foreign countries other than China.

The completion of the production of Apple products took place in full in China, although Apple has made efforts to diversify its production base.

In its registry about the Apple Watch, Apple said the product is a “US-designed smartwatch” and should be considered exclusive because it is widely used by consumers for mobile connectivity and healthcare applications.

Apple said the watch “is currently available from third countries in limited quantities,” suggesting that the company has tested production outside China.

Apple also supports exceptions on seven components in the Mac Pro, including music pads, mouse, power supplies and circuit boards. In its launches, Apple said the cars were not from sources outside China, and that it was complicated and made to order.

The Mac Pro is the only Apple computer assembled in the United States. The employer manufactures a Mac Pro desktop computer outside Austin, Texas. Apple CEO Tim Cook then took President Donald Trump on a tour of the facility in 2019.

Eight Apple comments are among the 1700 entries filed with USTR since October. Other technology companies including Google, Intel, and Sonos are also weighing in on cost reductions, according to the USTR website.

An Apple spokesman declined to comment.

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