DragonI

Apple Avoids U.S. Tariffs on Smartwatches, Earbuds

Apple dodged stinging duties on its smartwatches and wireless earbuds after the U.S. excluded those gadgets from tariffs on $200 billion in Chinese goods.

www.wsj.com|Tripp Mickle

Because Apple assembles almost all of its gadgets in China, its watches, AirPods and other devices are vulnerable to the Trump administration’s plans to widen the scope of tariffs on Chinese imports—a risk Apple warned about earlier this month.

That reliance also could make the iPhone and other devices vulnerable if Chinese officials follow through on retaliatory moves to restrict sales of materials, equipment and parts key to U.S. manufacturers—measures The Wall Street Journal on Sunday reported that Beijing is considering.

The timing of the countries’ new measures could be especially bad for Apple, which this week starts shipping two of its three new iPhones and a new smartwatch. Those new devices are expected to help fuel the company’s sales in the final three months of the year, when Christmas shopping helps deliver about one-third of Apple’s annual revenue.