Home modems, routers hit by US China tariffs as ‘smart’ tech goods escape

WASHINGTON: US tariffs that hit some US$ 200 billion worth of Chinese products, spare many high-profile consumer technology items such as ‘smart’ watches and speakers, but the less flashy home modems, routers and internet gateways that make them work weren’t so lucky.

Consumer tech industry officials and the US Customs and Border Protection agency say they expect billions of dollars worth of these products, including those designed for home use, will be subject to the 10 per cent tariffs activated on Monday.

The move will effectively create a two- tiered tariff structure for consumer internet, with many products, such as Fitbit fitness trackers, Apple Inc’s watch and Amazon.com Inc’s Echo smart speaker being favored over routers and internet gateways from Arris International, Netgear, D- Link and others.

“We’re operating under the assumption that the tens of millions of devices that deliver high-speed internet into consumers’ homes will be impacted by these tariffs,” said Jim Brennan, Arris’ senior vice president of supply chain, quality and operations.

“It feels anti- consumer because our devices are what enables the core of consumer tech,” Brennan told Reuters.

The modems, routers, switching and networking gear that keep the internet functioning were not included in a newly created US tariff code that was exempted from the latest China tariffs, a spokesperson for the US Customs and Border Protection agency said.

The agency has made no distinction between consumeruse modems and routers and the commercial network equipment used by data centers and broadband internet providers. — Reuters