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AAPL.O's IrPod, Apple Watch and HomePod are not included in the Trump government's tariff reprieve list and will be taxed by 10% from September 1. Sales of Apple's main product, the iPhone, have been sluggish this year, relying on these three products to help offset the impact.
The U.S. government announced Tuesday that it will not impose tariffs on some important products, including Apple's MacBook computers and iPhones, until December 25. U.S. President Trump said the change was designed to avoid the impact on American consumers during the Christmas shopping season.
Apple's share price ended up more than 4% higher after the tariff cuts benefited some of its best-selling products.
The Trump administration did not explain why some electronic products were offered preferential treatment, while others were not. Many products will face tariffs from September 1, including smart watches, fitness trackers, smart speakers and Bluetooth headphones, which have previously enjoyed tax incentives.
This time, many of the best-selling products from Apple's competitors, such as Fitbit (FIT.N) smart watches and Amazon.com (AMZN.O) and Alphabet's Google (GOOG.O) smart speakers, were not included in the tariff moratorium. The Trump administration had proposed a tax on these products since September last year, but changed its plan at the last minute. Apple and other companies had previously told the government that the tariff would "slow down the economic growth of the United States, reduce competitiveness and push up consumer prices in the United States".


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