USTR Gives Potential Tech, Telecom Challengers Little Time Before Monday's Effective Date

Lighthizer said the duties take effect Sept. 24 at 10 percent, rising to 25 percent Jan. 1. Beijing said it in turn will slap 10 percent duties on $60 billion worth of U.S. goods starting Monday. "The Chinese side will have to take countermeasures" that "resolutely safeguard its legitimate and legal rights and interests, and uphold the global free trade order," said a Foreign Ministry spokesman Tuesday. President Donald Trump threatened Monday to "immediately pursue" another tranche of tariffs on $267 billion worth of additional imports if China retaliates for the coming batch.

CTA credited the administration for sparing smartwatches, fitness trackers, Bluetooth equipment and other connected consumer devices from the new tariffs list. But “we are especially concerned” that printed circuit assemblies, routers and networking equipment remain on the list, said Shapiro. That “will stifle our global leadership in 5G, create an internet tax on businesses and cause uncertainty for companies,“ he said.

JLab Audio, which markets Bluetooth headphones and earbuds, was among Monday’s big winners. “I'm thrilled that our comments were heard and that adjustments were made,” emailed CEO Win Cramer Tuesday. Cramer testified Aug. 21 before a USTR hearing that tariffs on products comprising 80 percent of JLab’s business would have been “catastrophic” for the company. Asked if he nevertheless favors CTA going to court to block the remaining tariffs, he said: “I generally support any action that helps keep taxes off of consumers.”

The tariffs were something of a mixed bag for Logitech, which argued successfully for the removal of wireless headsets imported from China but failed to persuade the USTR to remove other goods. “These tariff actions will negatively impact the U.S. consumer and regrettably they are going forward,” emailed a spokesperson. “We will continue to ensure that our products are properly classified and that the overall impact on our customers is minimized.”

The decision imposing the tariffs was “reckless and will create lasting harm to communities across the country,” said Information Technology Industry Council CEO Dean Garfield. “If implemented, these tariffs will have both short- and long-term effects on the United States -- from increased prices at the checkout counter to decreased leadership on the emerging technologies that will shape our future.” ITI questions the tariffs’ legality.

The Telecommunications Industry Association fears the tariffs will cause hundreds of millions of dollars in “financial damage” to the U.S. telecom equipment industry, said Cinnamon Rogers, senior vice president-government affairs. The tariffs will “undermine the American adoption of strategic technologies including 5G, exacting long-term economic costs and hurting U.S. strategic competitiveness,” she said. “Taxing the network equipment used to deliver these services and devices will handicap America amid a global race for technology leadership.”

The tech products targeted for tariffs are “critical to strategic economic and national security priorities” for the U.S., including its “global leadership” in artificial intelligence, 5G and IoT, said Elizabeth Hyman, CompTIA executive vice president-public advocacy. “This irresponsible and ineffective trade war will only punish American consumers and companies while doing little to actually change China’s trade practices.”

The Computer & Communications Industry Association is “disappointed” the administration “seems to continue to misunderstand the complexities and reality of global trade,” said CEO Ed Black. “There are many legitimate trade concerns US companies have in the global marketplace, but tariffs are unwieldy and often counterproductive to address those problems. We’d like to see the administration be a collaborative leader with like-minded countries to improve the global trading system.”