Fitbit files for tariff relief to avoid US tariffs
FITBIT HAS FILED A REQUEST FOR AN EXCLUSION ON THE 15% DUTY THAT TOOK EFFECT ON SEPT 1
COLUMBUS: Fitbit Inc., soon to be acquired by Google, says it’s shifting manufacturing operations out of China for its health trackers and smartwatches to avoid US tariffs. But until then, it wants relief from US President Donald Trump’s duties.
The smartwatch maker has filed a request for an exclusion on the 15% duty that took effect on September 1 on its wrist-wearable communications devices, saying that while its goal is to eliminate the use of Chinese manufacturers, it “respectfully requests” a tariff waiver for its smartwatches and fitness trackers now imported from China.
The duties will allow Chinese firms such as Huawei Technologies Co. to gain US market share while helping China’s data-collection and surveillance aims, the firm said.
“Tariffs that place US brands like Fitbit at a disadvantage relative to Chinese competitors in the U.S. market will only further these objectives,” the company said in its exclusion request, which was posted online October 31. The office of the US Trade Representative will make the determination.
The request for a tariff waiver was posted a day before before Fitbit announced that Alphabet Inc.’s Google had agreed to buy the wearable device maker for $2.1 billion in cash, a move that could shore up the internet giant’s hardware business while also potentially increasing antitrust scrutiny. The company referred requests for comment to its exclusion request and a previous release.
Exclusion decisions are based on whether a product is available only from China, is strategically important or related to Chinese industrial programs, and whether duties will “cause severe economic harm” to the company or US interests.
Fitbit said the vast majority of global production capacity for wrist-wearable communications devices is in China, and that while it’s aware of facilities in Taiwan and South Korea producing such devices, they’re fully owned by or contracted to competitors.
Fitbit said last month it’s moving manufacturing operations out of China