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One expert says tariffs could have a diminished impact on the BEAD Program. Indirect impacts, however, could be looming.

By: Brad Randall, Broadband Communities

Thanks to Build America Buy America (BABA) Act regulations, new sweeping tariffs announced by President Donald Trump are likely to only have a modest impact on broadband deployments associated with the Broadband Equity, Access, and Deployment (BEAD) Program.

That’s according to Dr. Nathan Smith, the Director of Economics and Policy for Connected Nation.

In comments to Broadband Communities today, Smith said BABA Act restrictions will likely insulate BEAD deployments from more substantial impacts.

“ISPs that took BEAD funds were already subject, for most BEAD network components, to BABA restrictions, which barred them from procuring key inputs like fiber-optic cable more cheaply abroad,” he said. “As a result, the additional impact of the new tariffs on BEAD costs is modest.”

Smith, however, warned that indirect effects from Trump’s tariff announcements could still produce impacts.

“Indirect effects from the macroeconomic impact of tariffs, for example on the availability of labor and capital, will probably impact BEAD more than the direct cost of tariffs on imported components,” Smith said.

Smith’s comments today are consistent with sentiments he expressed in March.

Previously, in an appearance on the Beyond the Cable podcast, Smith said he remains optimistic about the BEAD Program.

“There’s been a lot of frustration that it took so long to actually connect anybody to broadband,” he said. “But that was kind of by design. You needed quite a bit of planning because they were trying to get to universal coverage.”

He said questions also remain unanswered, however.

“The reality is that although BEAD is prioritizing fiber, you can’t get that everywhere,” he said. “Sometimes it’s just not economic to build a fiber network.”

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