Reportedly, the electronics such as Bluetooth devices and smartwatches were spared from the list of Chinese products to be executed with 10% tariffs. The administration is planning to work on a solution where the consumer products will not be covered by tariffs. However, the products such as network router-type would have tariffs on them. The Trump administration stated that a new round of tariffs on Chinese supplies worth $200 Billion will be executed from next week. This is because China has not changed the policies which were reported as unfair trade practices by the U.S. administration. Executing Chinese networking equipment to tariffs can have a big effect on the tech sector. Products such as routers and modems are used in controlling IT networks that deliver products and services.
Speaking of tariffs on Chinese goods, recently Cisco was in the news as the company has stated that new US tariffs would be fairly significant for them. Chuck Robbins—CEO and Chairman of Cisco—stated to CNBC that Cisco might have to deal with the ongoing trade war between the U.S. and China by sharing the higher prices to its customers. Robbins further added that the company is also trying to work on several issues regarding the upcoming tariffs. These include uplifting the company’s supply chain globally and having discussions with Trump’s administration. The discussion would help in understanding to the officials about complications of tariffs on Cisco’s products. Big companies such as Juniper Networks, Dell, and Hewlett Packard along with Cisco have issued an eleventh-hour application to remove some products from the new round of tariffs.