Apple wants iPhone exemption from US tariffs

(Image credit: Future)

Apple is seeking exemptions from US tariffs on Chinese manufactured goods, arguing its products are not important to Beijing’s industrial programmes.

US President Donald Trump has introduced a series of tariffs on Chinese-made products as part of on ongoing trade dispute.

However this impacts Apple’s products, which are either assembled in China or rely on components from the country. Famously, devices such as the iPhone famously have ‘Designed by Apple in California, Assembled in China’ on the back.

Apple tariffs

A new range of tariffs came into effect in September and Apple is paying some of these already, despite CEO Tim Cook telling US President the charges would have a negative impact on the company.

Tariffs are set to affect iPhones, Apple Watch, AirPods, iMacs and HomePods, as well as components for the repair of these products. Despite slowing sales of iPhones, the category is a huge driver of revenue at Apple, while the company’s wearables and accessories business is growing.

The latest requests for exemption were reportedly submitted to the US Trade Representatives Office on the first day submissions were accepted. Other technology firms, such as Fitbit, have also made similar filings.

In order to emphasise its contribution to the US economy, Apple claims it supports  as many as 2.4 million jobs in the US and is on pace to directly contribute £350 billion to the American economy by 2023.

Across its supply chain, Apple says it deals with 9,000 supplier in the US, spending $60 billion and supporting 450,000 jobs. It says 1.9 million jobs rely on the app economy partly stimulated by the iPhone.

In addition to its financial contribution, the firm claims it pushes innovation and quality standards across the board because of its high demands.tve

Via Reuters

Steve McCaskill is TechRadar Pro's resident mobile industry expert, covering all aspects of the UK and global news, from operators to service providers and everything in between. He is a former editor of Silicon UK and journalist with over a decade's experience in the technology industry, writing about technology, in particular, telecoms, mobile and sports tech, sports, video games and media.