Apple Can’t Find Sourcing Outside China, Say 11 List 4A Tariff Exclusion Requests
Apple, Fitbit and SVS Sound were the first tech companies to seek product exclusions from the 15 percent fourth-tranche tariffs after the Office of the U.S. Trade Representative began accepting exemption requests Thursday. Apple filed 11 requests, and Specialty Technologies,…
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which does business as SVS, filed two. There's one each for the finished speakers and subwoofers it sources from China. Many of Apple's exclusion requests were for parts, components and accessories. Some were for “final” products sourced as finished goods from China, including the Apple Watch, iMac desktop, HomePod smart speaker and AirPods wireless earbuds, said the docket. “Apple has not identified a source outside of China that is able to meet U.S. demand for this product in the coming year,” said each application. The product is “not strategically important” to Made in China 2025 “or other Chinese industrial programs,” said each application. The company didn’t comment Friday. Fitbit "began to adjust its operations" almost immediately after the Trump administration proposed tariffs on smartwatches and fitness trackers sourced from China, said the company. It "anticipates being able to make substantial additional changes to its supply chain in the foreseeable future." The company will shift production to "outside China" starting in January for “effectively all of its trackers and smartwatches” (see 1910090025). It announced Friday an agreement to be bought by Google for $2.1 billion (see separate report, this issue). The public has two weeks to comment, and requesters have seven days to respond. Importers can file through Jan. 31 at USTR’s online portal. The docket posted about 80 requests from various industries that were filed the first day. Any exclusions granted would be good for a year and would be retroactive to Sept. 1 when 4A tranche took effect.