Apple, Garmin & Fitbit catch a break from Friday’s US tariff move
Apple, Garmin and other smartwatch makers got some breathing room on Friday. Trump pulled back on steep electronics tariffs, and that decision takes some real pressure off their efforts to keep prices and supply chains under control.
The announcement, quietly posted by US Customs and Border Protection, says that smartphones, computers and a range of electronic components are now exempt from the 125% tariffs aimed at Chinese imports. That includes parts like chips, memory cards, and solar cells. Smartwatches weren’t explicitly mentioned by name, but they almost certainly fall under this umbrella.
Who benefits most
Apple probably benefits the most here. The company still makes most of its Apple Watches in China, and was staring down the barrel of some brutal import taxes. These exemptions, which are being backdated to April 5, take a lot of pressure off. Apple’s been working on moving some production to India, but that takes time.
Garmin’s situation is a bit different. A good chunk of its manufacturing is in Taiwan, but it still relies on Chinese suppliers for parts. The tariff relief on components like semiconductors is a definite plus, even if they weren’t facing the full brunt of the device-level import tax.
Fitbit, now part of Google, is in a middle ground. They’ve started shifting away from China, but they haven’t fully made that jump. This pause helps them keep things steady while they keep building out other manufacturing options. For them, it’s probably more about saving on parts than dodging full-device tariffs.
Amazfit—run by Zepp Health—is one of the biggest winners in the budget space. Most of their watches are made entirely in China and shipped directly to the US. Without this exemption, they’d either have to hike prices or eat the cost. Neither of those options is attractive when you’re competing in the low-to-mid range of the market.
Samsung is a little less affected. Most of their production has already moved to Vietnam, so they were more insulated from the hit. Still, even Samsung pulls components from China. And if parts get expensive, everyone’s costs start rising. So this helps them too, just in a less dramatic way.
Smartwatch Maker | Manufacturing Base | Component Dependency (China) | Impact of Exemption | Strategic Flexibility |
|---|---|---|---|---|
Apple | Mostly China | High | Major benefit (finished goods and components) | High (can shift supply chain) |
Garmin | Taiwan, some China | Moderate | Moderate benefit (mostly component-level relief) | Moderate (already diversified) |
Samsung | Vietnam, some China | Moderate | Moderate benefit (mostly components like chips) | High (well-diversified production) |
Fitbit (Google) | China, currently shifting | High | Moderate benefit (components and possibly finished) | Moderate (Google backing helps transition) |
Amazfit (Zepp Health) | China | Very High | High benefit (critical for US market competitiveness) | Low (heavily reliant on Chinese base) |
Uncertainty going forward
The White House says the point of this exemption is to give US companies more time to move production stateside. That’s the official story. Whether or not anyone can actually do that in the short term is another question. Relocating advanced manufacturing isn’t like flipping a switch. It’s slow, expensive, and complicated.
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Also worth noting—this isn’t some sweeping change of policy. The big global tariff of 10% still stands, and China-specific import duties have jumped up to 145% unless something changes. The carve-out for tech looks more like a short-term adjustment than a shift in direction.
For now, though, it’s good news for anyone making or selling smartwatches. Prices won’t need to spike. At least, not yet.
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