If the White House follows through with its threat to impose tariffs on an additional $200 billion worth of Chinese imports, you may feel the effect on your wrist and in your ear.
According to a new Reuters report, previous rulings by U.S. Customs and Border Patrol classify wearable devices such as the Apple Watch and Fitbit, as well as connected speakers from companies such as Sonos, as “data transmission machines”—a category of product that is included in President Trump’s latest tariff proposals.
In other words, if these devices remain included after the proposal passes its public comment period, it’s quite likely that there will be a 10% tariff on such products from Apple (AAPL), Fitbit (FIT) and Sonos.
The threatened tariffs would mark a significant escalation of the U.S.’s trade war with China, as the most recent tariff tranche only covers $34 billion worth of goods.
Economists expect the U.S. upcoming tariff assault to hit American consumers with what is effectively a 10% consumption tax, as just under a quarter of those tariffs cover consumer goods. Earlier rounds mostly included materials and components, which have more of an indirect effect on product prices.
China has filed a complaint with the World Trade Organization over Trump’s $200 billion tariff plan, ahead of the tariff’s potential enforcement in September.
White House Economic Advisor Larry Kudlow said Wednesday on CNBC that he was not a fan of tariffs, but “the president is doing exactly the right thing here” as the world trading system is “broken” and “the biggest culprit is China.”
