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Cloud Computing: Tariff War May Impact US Cloud Costs
Tariff wars may be coming to the cloud. Part of the proposed tariffs on $200 billion of Chinese products include network hardware, like routers, switches, servers, motherboards, memory modules and coaxial cables. A tariff on Chinese goods could range from 10 to 25 percent. Those higher prices could make the cost of cloud computing for the three million data centers in the US more expensive.
That is the finding of a report on the effects of proposed Trump tariffs on Chinese products by the Information Technology and Innovation Foundation (ITIF).
Possible impact on cloud computing from tariffs could include:
- Higher prices for consumers of cloud technology
- Cloud providers may hire fewer people and have less money available to invest in research
Stephen Ezell, vice president of global innovation policy at the ITIF, said that “if you’re a small business, either your costs are going to go up, or you’re going to have to consume fewer cloud computing services.”
Caleb Foote, an ITIF research assistant, said that “many Americans will feel the impacts of the proposed tariffs on cloud computing through increased prices, lost jobs and decreased economic opportunity.”
