U.S. trade regulators have approved Apple Inc’s (AAPL.O) request to waive tariffs on China-made Apple Watches, the Office of the United States Trade Representative said in a letter dated Friday.
The iPhone maker had requested for an exclusion in October, seeking relief from U.S. tariffs of 15% that took effect on Sept. 1.
Apple’s wearables and accessories business, which includes Apple Watch, AirPods and HomePod, raked in revenue of $24.5 billion in its fiscal year ended Sept. 2019, accounting for about 9.4% of its total sales.
Shares of the company were last down 2.3% at $223.89. The stock pared some losses after a Nikkei report said iPhone assembler Foxconn had secured enough workers to meet “seasonal demand” at all major Chinese plants.