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Electronics Firms Shouldered The Burden Of $10bn Due To Tariffs

The trade war between US–China entered a new phase this Sunday which will hit the consumer wallets. As per the official announcement done by the Federal Register, trump administration is going to increase the tariffs on the imports from china. Due to this when a company will import smart speaker, drone, or TV from china it will be liable to pay a tax of 15% to the U.S government starting September 1. According to Bronwyn Flores who is a spokeswoman for CTA, this will result in raising the prices on the gadgets and various other products for U.S people.

The leading companies are also not safe from the tariffs. The fight of apple towards the tariffs so that their products remain unaffected shows what other electronic companies are navigating the process and what they are going through. Apple looks vulnerable to tariffs just like every other electronic company as most of the final assembly of apple’s products is done in china.

On Sunday, both Apple watch and AirPods were hit by 15% tariff. These gadgets come under the category of products which are fastest growing. Other products that will be affected by this are iMac desktop and HomePod speaker. As per CTA, List 4b for December is scheduled and will be affecting consumer technology products by $115 billion which will include high prices items (BTI). Smartphones, tablets, video-games consoles and laptops are included in this category.

The goods of this batch were earlier scheduled to become a part of September 1 tariff, but many goods were delayed by USTR to December. Trump said that the tariffs were delayed over Christmas shopping as some tariffs might affect the U.S customers. Other companies and apple can avoid tariffs by applying for exclusion. It means other companies and apple has one more chance to prevent tariffs on their products.

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