Will telecommunications be priced out with Trump’s tariffs?

President Donald Trump is less than a month into his second term but has wasted no time imposing a 10 percent tariff on goods from China, sparking concern from the telecommunications industry. Equipment vendors are understandably keeping a close eye on how events unfold, because while wireline providers may be left unscathed the same can’t be said for the supply chain. Will Townsend, VP and principal analyst at Moor Insights & Strategy, said the China tariff is a “non-impact” for rural U.S. broadband deployments, given providers have been “well on the way” of reducing equipment from vendors like Huawei and ZTE. That’s mainly due to the government’s Rip and Replace program, which is poised to get $3 billion in additional funding from Congress. But the White House also wants to implement a 25 percent tariff on imports from Canada and Mexico. If those do move forward, “I believe it could impact fiber and wireline infrastructure with supply chains in those countries,” Townsend said.