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A handful of tech giants invokes one of the White House's priorities – the leadership of an emerging wireless technology known as 5G – to oppose the addition of 200 billion dollars from China.
Intel
Corp.
INTC -1.40%
,
Cisco Systems
Inc.
CSCO -0.17%
Dell Technologies
Inc.
DVMT 0.25%
and other technology companies seek to convince the US Trade Representative not to consider setting tariffs on products that they believe are essential to the deployment of fifth generation wireless services to the United States. – United.
By increasing the costs of the goods needed to build 5G networks, the proposed rates will "slow down the pace of technology adoption in the US economy, forcing US companies and institutions to lag behind their foreign competitors. tariffs, "Intel wrote in comments filed with the agency Thursday night.
The tariffs seem to run counter to the White House's stated goal of 5G technology. In March, the Trump administration thwarted the $ 117 billion hostile bid by Broadcom Ltd.
Qualcomm
Inc.
after a group of US experts who showed concern over foreign transactions, the acquisition could thwart the 5G development of the San Diego chip maker. At that time, the White House made US leadership in the development of 5G a national security issue.
The US Trade Representative reviews the comments before making a final decision on rate-specific products. The Trump administration wants to ensure that China is in fair competition in the emerging 5G market, said White House deputy press secretary Lindsay Walters.
"No final decision on the details has been made," she said.
The White House is preparing to increase pressure on China by imposing tariffs of up to 25% on Chinese products worth $ 200 billion. It would be above the 50 billion dollars of Chinese exports that the administration has already hit with 25% tariffs. The public comment period on the new rates ended on Thursday, the last step before a decision.
President Trump threatened Friday 267 billion dollars of additional tariffs on Chinese products, saying they could be implemented quickly.
The impact of tariffs on the competitiveness of 5G in the United States is not very clear, said Chetan Sharma, a consultant in the mobile industry. The market is still nascent and the infrastructure of new technology is just beginning to emerge from China.
"But if this situation lasts too long until 2019, then there could be a measurable impact," Sharma said.
Technology companies have argued that pricing would ensure that next-generation technologies promise to be faster than autonomous cars, virtual wireless and other innovations.
According to Cisco, Dell, rates would increase the costs of assets such as routers and switches used to deploy 5G.
Hewlett Packard Enterprise
Co.
and
Juniper Networks
Inc.
in a joint deposit. Wireless service providers would pass these increases to consumers, raising prices for mobile plans, they said. And higher costs would reduce incentives to improve network infrastructure, companies said.
Like Intel, companies have written that "the proposed fees would have a negative impact on the major US economic and strategic priorities."
In addition, the companies claim that the reduction in tariff benefits could result in "hiring freezes, stagnant wages and even job losses, as well as investor detriment such as reduced dividends and a loss of value for investors. shareholders".
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