The USA has officially banned the import of routers manufactured outside the United States. The rationale mirrors previous bans, such as those against Huawei, citing national security risks. While the goal is to ensure all routers are produced domestically, the reality is that this is currently not feasible.
Target: Routers
According to the Federal Communications Commission (FCC), foreign routers present “an unacceptable risk to the national security of the United States and to the safety of American citizens.” In recent years, numerous cyberattacks have targeted home routers, leading to disruptions in connectivity and even theft of intellectual property. Examples include cyberattacks attributed to Chinese actors like Volt, Flax, and Salt Typhoon. The FCC emphasizes the need for reliable supply chains to prevent foreign actors from gaining unauthorized access to American homes and businesses.
The Router Market
Statistics show that at least 60% of routers used in the U.S. are manufactured in China. Popular brands such as TP-Link dominate the sales charts on platforms like Amazon. Other prominent brands include D-Link, Netgear, Linksys, and ASUS. Notably, only Netgear and Linksys are American companies, but neither actually manufactures their products in the U.S.
Linksys, currently owned by Foxconn, has its routers produced in Asia, while Netgear designs its products in California but outsources manufacturing. Cisco also follows this trend; it outsources production to various countries, including Mexico and Brazil. Even Google’s Nest Wifi routers are produced abroad, highlighting the extensive foreign dependency in the router market.
Why This Matters
This regulatory measure primarily targets a specific nation: China. It aligns with previous bans on other technologies, such as drones predominantly produced by DJI. The router ban is significant because routers are ubiquitous; almost every household has one, making this regulation impact more users than niche products like drones.
Interestingly, even American companies are not immune to security vulnerabilities. Cisco and Netgear routers have been targets of cyberattacks, and a notable incident in early 2024 involved the FBI dismantling a Chinese botnet that affected home routers from these brands. Alarmingly, these attacks primarily involved outdated routers that lacked security updates.
What’s Next?
Current users of foreign-manufactured routers can continue using their devices without issue. However, the import of new foreign routers faces a strict ban. Manufacturers aiming to sell in the U.S. will have two choices: secure conditional authorization from the government by committing to produce in the U.S. or cease operations in the American market.
A Growing List
The FCC’s list of banned devices continues to grow. Starting with telecommunications equipment from Huawei and ZTE in 2021, the ban evolved to include Russian Kaspersky software, China Mobile, and China Telecom. The next logical step occurred in 2024 with drone restrictions, culminating in 2026’s ban on routers not manufactured in the U.S. What will be the next target? The landscape is changing rapidly.
Image | Xataka
In Xataka | Before the tariffs, China purchased most of its beef from the U.S. After implementation, another country has taken the lead.