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00:00:01
>> President Trump's trade war with China could be coming for some of your favorite gadgets from Apple, Fitbit and others. I'm Steven Nellis with Reuters in San Fransisco. We've been pouring over rulings on tariffs and here's what we found. A recently released $200 billion list of tariffs on goods from China could effect products like the Apple Watch, several fitness trackers from FitBit and streaming music players from Sonos.
00:00:26
Now, to be sure, some of the biggest kinds of technology goods like mobile phones, personal computers and laptops, those things aren’t on the list. But here’s why some goods like those aren’t on the list and some are. When a company brings a good into the United States, they have to get assigned what's called the tariff code, that code is based on a number of technical features and it's usually not known what code applies to what product.
00:00:50
But in a few cases companies like Apple or Fitbit or Sonars have gone to the government and asked for a ruling on what code applies to their products and the government made those rulings public. And what we know is that some of the codes that have been assigned to products like the Apple Watch are on this list of $200 billion in tariffs from China.
00:01:12
Now, it's not clear that these products will ultimately face the 10% tariff that's been proposed. The companies have a chance to either argue that those codes should be dropped from the list or they can apply for an exclusion when the tariffs take effect. Or they can argue that their product should actually be labeled with a different tariff code.
00:01:31
But that's gonna be really difficult because the current $200 billion proposed list has about 6,000 different codes on it. They contain almost every kind of technology you could think of. And what we're hearing from technology advocates and trade experts, is that it's highly unlikely that this list becomes final without impacting products that people use everyday and the companies make billions of dollars in selling.