Communications Equipment Manufacturers NAICS 3342

May 6, 2025 - Some Electronic Products Exempted From Tariffs

• Some electronics products imported to the US have been exempted from President Trump’s reciprocal tariffs, according to US Customs and Border Protection. Profit margins of communications equipment manufacturers may be compressed if tariffs are applied to imported manufacturing inputs in the future. The exemption, which comes after the Trump administration imposed a minimum tariff rate of 145% on Chinese goods imported to the US, does not include the 20% tariff on Chinese goods for the country’s alleged role in the fentanyl trade. Various electronic parts are among the exempted products. The exemption applies to products entering the US or removed from warehouses as early as April 5.
• Private construction spending on data centers has more than doubled what it was in late 2022, according to the US Census Bureau. Companies are investing in data centers to get ahead in artificial intelligence, according to Bloomberg. Communications equipment manufacturers are likely to benefit from increasing data center construction. Private construction spending on data centers has surged close to $30 billion a year.

• The burden of the Secure and Trusted Communications Networks Act (aka the Huawei rip & replace program) has fallen disproportionately on smaller carriers, which relied more on the cheaper gear from the Chinese firms than large companies like AT&T and Verizon, according to the Federal Communications Commission (FCC). Some smaller wireless companies now say they may not be able to upgrade their networks and continue serving their communities, where they are often the only internet providers. US Senator Deb Fischer introduced legislation to close the gap in rip-and-replace funding for carriers. Passing it will be challenging, with similar legislation failing twice over the past year. Congress only appropriated $1.9 billion to fund the program but the cost has exceeded $5 billion, according to the FCC.
• Communications equipment manufacturing industry employment decreased slightly and average wages for nonsupervisory employees increased slightly during the first month of 2025, according to the BLS. Communications equipment manufacturing firms moderately increased their prices during 2024, according to the US Bureau of Labor Statistics (BLS). Communications equipment manufacturer sales are forecast to grow at a 2.72% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.