China, the world’s second-largest economy, is growing at its weakest pace in almost 30 years. Its trade war with the U.S. is significantly having a deep impact on its economy.

Consumer brands across China, including Apple Inc, have lowered their price points following a cut in the country’s value-added tax (VAT) rate.

Price tags for products listed on the Apple’s China website have been lowered. This includes a discount of up to $74.44 (500 yuan) for some of Apple’s latest iPhone models.

According to local media reports, the suggested retail prices for brands including LVMH’s Louis Vuitton and Kering’s Gucci have also been cut by around 3%.

Even carmakers, such as BMW AG and Mercedes-Benz have stated prices for several car models have been reduced following a change in the VAT rate.

While Apple declined to comment on its price cuts, LVMH and Kering did not immediately respond to requests for comments.

In March 2019, China had stated it would be cutting taxes and fees for all companies by nearly 2 trillion yuan in 2019 as a means to boost its cooling economy. China’s manufacturing, transportation and construction sectors are all set to benefit from the reduced rates.

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