Tariff Concerns Loom Over U.S. Fiber Broadband Expansion, Analyst Warns

WASHINGTON, April 30, 2025 — U.S. fiber broadband deployment could face mounting cost pressures and project delays if new tariffs are introduced or expanded, warned Jaimie Lenderman, Research Manager at Omdia, during a Fiber Broadband Association meeting Wednesday.

Lenderman highlighted how many broadband equipment vendors have ramped up their U.S. operations to comply with Build America, Buy America rules tied to the $42.45 billion Broadband Equity, Access, and Deployment program. While some vendors have moved entire production lines stateside, others are only shifting enough capacity to qualify, citing the higher costs of U.S.-based manufacturing and labor.

Despite these efforts, many components still rely on imports. Any shifts in trade policy or the imposition of tariffs could further inflate prices, Lenderman said, introducing uncertainty to already complex supply chains.

Potential ripple effects on service providers could include postponing new builds, scaling back capital expenditures, or passing higher equipment costs to consumers. “Even if total spending remains constant, fewer premises may be reached due to rising input costs,” she noted.

Omdia is a global technology analyst and advisory company based in London, England.

Still, Lenderman emphasized that civil construction — largely labor-driven — accounts for 70 percent to 80 percent of total Fiber to the Premises project costs. Tariffs targeting imported machinery or optical line terminal components could raise costs modestly, but broader inflation and labor responses may prove more impactful in the long term.

“Labor costs may increase as workers respond to the wider economic effects of tariffs,” Lenderman said, pointing to a potential compounding impact on deployment economics.