Florida Congressman to Seek GAO Review of Tariff Effect on US 5G Deployment Capability

Rep. Alcee Hastings, D-Fla., plans to ask GAO to study whether President Donald Trump's trade policies, including tariffs on “foundational” telecom equipment like routers and network components, will make it more expensive to deploy 5G technology. “At a critical time in the rollout of 5G infrastructure,” Trump's “trade policies with China threaten to eliminate whatever advantage we have in the race to deploy 5G technology nationwide,” Hastings wrote colleagues, seeking support for his planned request. “His tariffs are raising the cost of the microelectronics that are crucial in the fabrication of 5G infrastructure, raising the costs to consumers as carriers begin to roll out this technology.” A draft request letter to U.S. Comptroller General Gene Dodaro sought information on how the tariffs will increase additional costs for U.S. deployments of 5G infrastructure and how they affect competition among 5G hardware manufacturers. Hastings' draft sought a GAO review of the “national security implications of our entire supply chain of 5G infrastructure being dependent on foreign hardware manufacturers” and the “possible conflicts of interest” between the Trump administration and Chinese telecom equipment maker Huawei. Capitol Hill has continued to push back against Huawei and fellow Chinese firm ZTE since the Commerce Department's settlement that lifted a ban on U.S. companies selling telecom software and equipment to ZTE (see 1901040049). Hastings bemoaned the U.S. "no longer manufacturers [sic] any of the core telecommunications network equipment related to 5G” and said the two Chinese firms shouldn't gain control of U.S. infrastructure.