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US Tariffs on China Could Mean Pricier Wearables, Speakers

The tariff list has a 'subheading' of products that previously covered the original Apple Watch, Fitbit health trackers, and Sonos speakers, Reuters finds. US Customs and Border Protection declined to comment.

By Michael Kan
July 20, 2018
Tim Cook Foxconn China

The proposed $200 billion US tariffs on Chinese goods could result in a price hike for smartwatches, wearables, and smart speakers.

The proposed tariff list includes thousands of different products, each with their own subheading. But as Reuters reports, deep down on that list is one particular subheading that covers a class of devices that can receive, convert, and transmit voice, images, and other data.

US border authorities have in the past ruled that certain products—including the original Apple Watch, Fitbit health trackers, and Sonos speakers—are classified under that very same subheading. As a result, popular wearables and speakers could get dragged into the Trump administration's trade war with China.

The tariffs, announced earlier this month, seek to impose a 10 percent duty on products from China, which means any companies that source their electronic devices in the country could be forced to raise prices. Last month, Sonos warned investors in an SEC filing about this possibility.

However, the tariffs are still under review, so it's possible they could be amended. US trade authorities are also establishing a process whereby companies can apply to have their products excluded from the list. US Customs and Border Protection declined to comment on whether popular consumer products might be affected.

Reportedly, President Trump has told Apple CEO Tim Cook the proposed tariffs are designed to exclude the company's iPhones, which are manufactured in China. But Trump's plans could end up changing. On Friday, he threatened to tariff all $505 billion Chinese goods that the US imports.

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About Michael Kan

Senior Reporter

I've been with PCMag since October 2017, covering a wide range of topics, including consumer electronics, cybersecurity, social media, networking, and gaming. Prior to working at PCMag, I was a foreign correspondent in Beijing for over five years, covering the tech scene in Asia.

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