As the U.S.-China trade war escalates, Apple and Fitbit were reprieved when the Trump administration released the final list of products that will be subject to a new round of tariffs starting next week.
So prices of the Apple Watch, AirPods, some Fitbit activity trackers and Bluetooth devices are not likely to rise because of the tariffs. But the prices of other computing and internet-connected products will go up.
That's because Intel, Cisco and other tech companies were not spared. Their China-made products will have 10 percent added starting Monday, and the tariffs will rise to 25 percent Jan. 1.
They include components for networking and semiconductor gear that make up the backbone of the internet and the cloud. Companies had warned the U.S. trade representative that tariffs on those products would be a "game changer" for American consumers.
Some items Intel had voiced objections about, such as transmission devices that help connect wireless devices to networks, were eliminated from list of third-round tariffs, which cover $200 million worth of products. But items such as processing units and printed circuits remain on the USTR list. Those are components used by computer makers including Apple, too, by the way.
An Intel spokesman said the company would have no comment.
"We are disappointed that the administration seems to continue to misunderstand the complexities and reality of global trade," said Ed Black, CEO of the Computer and Communications Industry Association, of which Intel is a member. "There are many legitimate trade concerns U.S. companies have in the global marketplace, but tariffs are unwieldy and often counterproductive to address those problems."
Fitbit was pleased: "We welcome this development and we appreciate the administration's time and effort to listen to industry and consumer concerns," a spokeswoman said.
Apple, which had also filed objections with the USTR, did not respond to a request for comment. Apple CEO Tim Cook has said in the past several months that he has talked with President Donald Trump about China and tariffs.
"We've spoken to Mr. Tim Cook many times," Trump's economic adviser, Larry Kudlow, said at the Economic Club of New York Monday, Bloomberg reported. "He's a really smart guy. He's given us some good advice," Kudlow said.
On Tuesday, Cook said on ABC's "Good Morning America": "I don't want to speak for (the administration), but I think they've looked at this and said that it's not really great for the United States to put a tariff on those types of products."
