\n<\/p>\n
In the weeks since President Donald Trump was sworn in for his second term, he has issued numerous executive orders and a game plan to return manufacturing to America.<\/span><\/p>\n With wingman Elon Musk, and the fledgling Department of Government Efficiency, the president has focused on reduced spending, new tariffs, staff cuts and threats to shutter government agencies.<\/span><\/p>\n Here’s what those changes might mean for network managers.<\/span><\/p>\n In February, President Trump announced the arrival of tariffs on semiconductors, autos and pharmaceuticals.<\/span><\/p>\n Enterprises will need to maintain flexible, secure and reliable supply chains going forward. Trump said he plans to apply a minimum 25% tariff on foreign-made chips bought from makers outside the U.S., which he believes will drive the semiconductor industry to migrate to the U.S.<\/span><\/p>\n Many companies currently source chips from companies in multiple countries. Those buying chips will likely face higher prices as the tariffs transfer increased costs to enterprises.<\/span><\/p>\n It can cost billions to <\/span>build chip manufacturing facilities<\/a><\/span>, and it takes years before facilities are planned, built and start manufacturing. In response, former President Biden signed the historic and bipartisan\u00a0CHIPS and Science Act into law two years ago. The act invested $53 billion in funding to bring semiconductor supply chains back to the U.S, create jobs, support American innovation and protect national security.<\/span><\/p>\n As of last August, the Department of Commerce had announced over $30 billion in proposed CHIPS private sector investments, spanning 23 projects in 15 states. These projects include 16 new semiconductor manufacturing facilities and are expected to create over 115,000 manufacturing and construction jobs across the country.<\/span><\/p>\n President Trump announced plans to change the CHIPS and Science Act, which could extend the timeline to get this initiative underway. Additional geopolitical considerations and higher production costs could present significant obstacles to domestic semiconductor manufacturing, according to Mauricio Sanchez, senior director of Enterprise Security & Networking Research at Dell’Oro Group.<\/span><\/p>\n “The future of initiatives like the Inflation Reduction Act, which includes major semiconductor subsidies, remains uncertain, creating unpredictability for chipmakers,” Sanchez said. Additionally, efforts to centralize advanced manufacturing in the U.S. might lead to resistance from allied nations, potentially pushing them toward alternative suppliers and reducing global market access for U.S. tech firms.<\/span><\/p>\n Trump’s tariffs on foreign-made chips are expected to raise the prices of various devices, including PCs, cards and phones. This would be in addition to Trump’s recent 10% tariff on Chinese-manufactured goods.<\/span><\/p>\n The Trump administration’s focus on domestic manufacturing aligns with long-term national security goals, Sanchez said. But achieving full semiconductor self-sufficiency remains an ambitious challenge.<\/span><\/p>\n “The interconnected global supply chain for chip manufacturing cannot be easily untangled, requiring continued collaboration with allied nations,” Sanchez said. “While increasing U.S. chip production can strengthen resilience, a balanced approach — leveraging both domestic capacity and international partnerships — will be essential for sustaining AI and network advancements.”<\/span><\/p>\n Sanchez said he expects enterprises to see a pause or loosening in regulatory oversight in the near term, which could make things more business-friendly. However, national security concerns will drive enterprises to invest in cybersecurity, focusing on AI and automation for threat detection and response.<\/span><\/p>\n “Supply chain security will remain a priority,” he said. “But with a shifting emphasis on domestic manufacturing, enterprises may need to reevaluate their vendor relationships in light of evolving geopolitical dynamics.”<\/span><\/p>\n Additionally, he said, enterprise IT teams should proactively <\/span>adopt zero-trust architectures<\/a><\/span> and segmentation strategies to enhance resilience. Even with relaxed compliance mandates, cyber threats will continue to evolve, he said, requiring enterprises to invest in AI-driven security.<\/span><\/p>\n Some experts believe the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program could significantly change under the Trump administration. The BEAD program provides broadband internet access to underserved locations in each state, using government funds.<\/span><\/p>\n It’s currently unclear what’s in store for BEAD, as the previous Trump administration promised but failed to deliver an infrastructure plan during Trump’s first four years as president. According to Tom Nolle, principal analyst at Andover Intel, it would be a surprise if the current administration shows interest in government-funded opportunities to close the digital divide using grants and reverse auctions.<\/span><\/p>\n “I’d be surprised if the new administration would be very interested in broadband equity, period,” Nolle said. “Thus, there might be more interest in dropping the initiatives than in making multiple initiatives more efficient.”<\/span><\/p>\n Frustration among both U.S. political parties around the digital divide drove the recent reintroduction of the Proper Leadership to Align Networks (PLAN) for Broadband Act. This act mandates a single broadband strategy for numerous spending initiatives, both underway and proposed.<\/span><\/p>\n In January, U.S. Sen. Roger Wicker, R-Miss., <\/span>said the legislation<\/a><\/span> requires the National Telecommunications and Information Administration (NTIA) to develop a national strategy to close the digital divide and create a plan to implement the strategy. This national broadband strategy would streamline processes and paperwork for all overlapping programs, spanning 133 funding programs managed by 15 agencies, according to the U.S. Government Accountability Office.<\/span><\/p>\nIt’s Tariff Time<\/h2>\n
Prepare for Price Increases and AI Challenges<\/h2>\n
Supply Chain and Enterprise Network Security<\/h2>\n
Uncertainty for BEAD<\/h2>\n
The PLAN for Broadband Act<\/h2>\n