Tariffs bring challenges for cloud computing industry

The booming US cloud computing sector is facing a challenge from US President Donald Trump's proposed tariffs on Chinese imports, as most of the components used for the development of information factories figure in the latest $200 billion round of tariffs.

While tariffs on some of the key electronic components for data centers have already gone into effect in two rounds of US tariffs on Chinese imports totaling $50 billion, the latest batch of tariffs are targeting every part of cloud infrastructure, including routers, switches and servers that redirect and process data, motherboards, memory modules and other key parts for data storage and cables that transfer data and connect gears.

"The proposed tariffs are the wrong solution to real problems and will punish US consumers, cost jobs, and undermine the long-term growth and innovation of the US cloud service market," said Jordan Haas, director of trade policy at the Internet Association, whose members include web-focused companies such as Amazon, Google and Facebook.