{"id":312,"date":"2018-09-24T10:49:00","date_gmt":"2018-09-24T10:49:00","guid":{"rendered":"http:\/\/thefreezoneblog.com\/blog\/2018\/09\/24\/high-tech-items-escape-trumps-tariffs\/"},"modified":"2018-09-24T10:49:00","modified_gmt":"2018-09-24T10:49:00","slug":"high-tech-items-escape-trumps-tariffs","status":"publish","type":"post","link":"https:\/\/thefreezonechannel.com\/old\/high-tech-items-escape-trumps-tariffs\/","title":{"rendered":"High tech items escape Trump\u2019s tariffs"},"content":{"rendered":"
\n<\/a><\/div>\n
\n<\/div>\n
\nMany high-profile consumer technology
\nitems such as \u201csmart\u201d watches and speakers were spared by the U.S.
\ntariffs that hit some $200 billion worth of Chinese products.<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nBut the less flashy home modems, routers and internet gateways that make them work weren\u2019t so lucky.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nConsumer tech industry officials and the
\nU.S. Customs and Border Protection agency say they expect billions of
\ndollars\u2019 worth of these products, including those designed for home use,
\n will be subject to the 10 per cent tariffs
\n activated on Monday. <\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nThe move will effectively create a
\ntwo-tiered tariff structure for consumer internet, with many products,
\nsuch as Fitbit (FIT.N) fitness trackers, Apple Inc\u2019s (AAPL.O) watch and
\nAmazon.com Inc\u2019s (AMZN.O) Echo smart speaker being
\n favoured over routers and internet gateways from Arris International
\n(ARRS.O), Netgear (NTGR.O), D-Link (2332.TW<\/a>) and others.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cWe\u2019re operating under the assumption
\nthat the tens of millions of devices that deliver high-speed internet
\ninto consumers\u2019 homes will be impacted by these tariffs,\u201d said Jim
\nBrennan, Arris\u2019 Seniour Vice President of supply chain,
\n quality and operations. <\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cIt feels anti-consumer because our devices are what enables the core of consumer tech,\u201d Brennan told Reuters.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nThe modems, routers, switching and
\nnetworking gear that keep the internet functioning were not included in a
\n newly created U.S. tariff code that was exempted from the latest China
\ntariffs, a spokesperson for the U.S. Customs and
\n Border Protection agency said. <\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nThe agency has made no distinction
\nbetween consumer-use modems and routers and the commercial network
\nequipment used by data centers and broadband internet providers.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nMost new internet-connected devices had
\nbeen lumped into a broad category in the U.S. Harmonized Tariff
\nSchedule, 85176200, \u201cMachines for the reception, conversion and
\ntransmission or regeneration of voice, images or other data,
\n including switching and routing apparatus.\u201d <\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nThe catch-all category saw $23 billion in
\n U.S. imports from China and $47.6 billion from the world last year. It
\nwas the largest component of U.S. President Donald Trump\u2019s latest
\ntariffs targeting Chinese goods.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nThe U.S. Trade Representative\u2019s office
\nhad said it was breaking out items such as smart watches, fitness
\ntrackers, Bluetooth audio streaming devices and smart speakers into a
\nnew subcategory that would be exempted, but it gave
\n few details. <\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nAccording to a notice posted by the U.S.
\nInternational Trade Commission, computer modems would stay in a separate
\n sub-category, while \u201cswitching and routing apparatus\u201d would be put into
\n a new sub-category. Neither of these sub-categories
\n were granted exemptions from the tariffs. <\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cAlthough we have not had occasion to
\nissue rulings on the scope of a provision for \u2018switching and routing
\napparatus,\u2019 we agree that as a general matter, modems, routers, and
\nnetworking equipment will be subject to the remedy,\u201d
\n a Customs and Border Protection spokesperson said late on Friday,
\nreferring to the 10 percent tariff.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nIt was not clear how much of the $23
\nbillion in Chinese imports within the catch-all category could escape
\ntariffs, but a Reuters review of industry data suggests the share could
\nbe small.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nU.S. Census Bureau data has not yet
\ncaptured the volume of annual imports from China \u2014 or any country \u2014 of
\nthe goods that will be exempt.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nBut the Consumer Technology Association
\nestimates that the U.S. market for fitness trackers, smart watches,
\nsmart speakers and wireless earbuds and headphones was $8.2 billion in
\n2017, with forecast sales of $11.6 billion for
\n 2019. <\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nEven if China produced a majority of those goods, exemptions would only apply to a fraction of the $23 billion category.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nCTA has forecast direct sales of modems
\nand routers to consumers at $2.3 billion for 2019, up from $2 billion in
\n 2017, excluding the products supplied directly by cable and broadband
\ninternet providers and equipment used in data
\n centers and other infrastructure outside the home. <\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\nBut the group argues that consumers will bear the costs of the tariffs, even if their service provider buys the modems.
\n<\/u><\/u><\/div>\n
\n<\/u> <\/u><\/div>\n
\n\u201cOverall, access to the internet will get
\n more expensive, mobile plans will get more expensive, and connected
\ndevices that go to your smart phones will get more expensive because
\neverything speaks to each other,\u201d said Izzy Santa,
\n director of strategic communications for CTA.<\/u><\/u><\/div>\n

<\/p>\n

\n<\/u> <\/div>\n","protected":false},"excerpt":{"rendered":"

Many high-profile consumer technology items such as \u201csmart\u201d watches and speakers were spared by the U.S. tariffs that hit some $200 billion worth of Chinese products.   But the less flashy home modems, routers and internet gateways that make them work weren\u2019t so lucky.   Consumer tech industry officials and the U.S. Customs and Border […]<\/p>\n","protected":false},"author":1,"featured_media":1357,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[44],"class_list":["post-312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-trade","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\nHigh tech items escape Trump\u2019s tariffs - The Freezone Channel<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thefreezonechannel.com\/old\/high-tech-items-escape-trumps-tariffs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High tech items escape Trump\u2019s tariffs - 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