3 Companies Left Out of the Latest Trump Tariffs

The trade war between the U.S. and China continues to escalate, with Beijing set to impose tariffs on $60 billion in U.S. imports in response to the Trump administrations’ new set of tariffs on $200 billion in Chinese imports. Despite the mounting pressure on companies in the world’s two largest economies, some firms and their products appear to be safe.

Tariffs  

President Trump announced on Monday that the U.S. will impose 10% tariffs on an additional $200 billion worth of Chinese imports. These new tariffs are set to start on September 24 and will climb to 25% at the start of the new year, which might help mitigate their impact on U.S. holiday shoppers (also read: The Trade War Escalates, is China really out of Ammunition?).

At this point, roughly half of all Chinese imports to the U.S. are subject to tariffs. And Trump responded to the new set of Chinese tariffs with the threat of additional tariffs on $267 billion of Chinese imports. If Trump’s latest tariff threats are realized it would mean that nearly all Chinese imports are subject to at least some tariffs.

The back and forth trade war between China and the U.S. is expected to start to hit some industries and companies hard. The U.S. automotive industry is one that could see its costs go up, which could then be passed onto consumers. Firms like Ford F, General Motors GM, and other American automakers might soon feel the tariffs. Meanwhile, some experts say that the tariffs will likely impact Intel INTC, Cisco CSCO, Microsoft MSFT, and other tech powers.  

With that said, not every major U.S. company will be harmed. Facebook FB and Google parent Alphabet GOOGL are both blocked in China, while Amazon AMZN and Netflix NFLX have little to no presence there now—although both firms would love to break into the market. On top of that, a few companies saw many of their products spared from the latest round of U.S. tariffs.

Apple AAPL

Apple won’t see its HomePod speakers, Apple Watch smartwatch, or its AirPods wireless headphones impacted by the new tariffs, according to the initial list of products. Earlier this month, Apple said it feared some of its products would be harmed by Trump’s proposed tariffs and noted that it would have to lift prices.

Some experts have pointed to CEO Tim Cook’s lobbying in Washington and meetings with President Trump as the reason Apple doesn’t look like it will be affected much. Plus, Apple’s flagship iPhone was never expected to be hurt in the first place.

Fitbit FIT

Fellow smartwatch maker Fitbit is also exempt from the latest tariffs, which is great news for the struggling fitness wearable firm. Shares of FIT have tumbled over 19% in the last three months as the firm fails to expand its reach in a crowded wearable market. “We welcome this development and we appreciate the administration’s time and effort to listen to industry and consumer concerns,” a Fitbit spokeswoman said Tuesday.

Fitbit saw its stock price jump over 2.7% on Wednesday on the back of this positive news.

SunPower SPWR

Similar to Fitbit, shares of SunPower surged following the announcement that the firm’s interdigitated back contact (IBC) solar cells and modules “within specific size and power ranges, will be excluded from the solar tariffs imposed in January.” The news came months after Trump announced tariffs on solar panels. “SunPower can now fully focus our resources to deliver the best solar solutions to our customers, develop the next wave of solar technology through American research and development and invest in American solar manufacturing,” SunPower CEO Tom Werner said in a company statement.

“This will support U.S. solar technology leadership and preserve American jobs. To this end, we are continuing with our planned acquisition of the SolarWorld Americas manufacturing facility in Hillsboro, Oregon and expect the transaction to close before the end of the quarter.”

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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
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