An anonymous reader quotes a report from CNBC: U.S. President Donald Trump's administration is reportedly considering new tariffs on semiconductors used in the U.S., as tech giants race to beat China in the artificial intelligence infrastructure build-out. The duties will be imposed on an expanded range of tech products made alongside chips, including laptops, data center servers and gaming hardware, eight people familiar with the matter told Politico in a report published Thursday.
The measures, which are still in the early phases and subject to significant changes over the next few months, will be introduced via a staggered rollout period, according to the report. The White House did not immediately respond to a request for comment from CNBC, but told Politico: "Reshoring semiconductor manufacturing is a top priority for President Trump, whose policies have already secured hundreds of billions of dollars of investments in this key sector." The tech industry is pushing back on the tariffs, warning they could raise chip costs, slow data-center construction, and undermine the very AI expansion the administration wants to promote. "This may be the single dumbest way imaginable to pursue American dominance in AI," said one tech official from a major industry group that also served in the first Trump administration. "It's like kneecapping yourself at the starting line."
Lobbyists say they have repeatedly urged officials to "tread carefully" because U.S. demand is surging while domestic chip capacity remains far too limited. The industry argues that factories take years to build and current domestic production cannot come close to satisfying demand.
One tech representative said "the math literally just does not work," noting that proposed duty-free allowances "wouldn't cover the hyperscalers alone." Meanwhile, the Computer and Communications Industry Association warned that higher costs and uncertainty could put the massive data-center buildout "in jeopardy."
The measures, which are still in the early phases and subject to significant changes over the next few months, will be introduced via a staggered rollout period, according to the report. The White House did not immediately respond to a request for comment from CNBC, but told Politico: "Reshoring semiconductor manufacturing is a top priority for President Trump, whose policies have already secured hundreds of billions of dollars of investments in this key sector." The tech industry is pushing back on the tariffs, warning they could raise chip costs, slow data-center construction, and undermine the very AI expansion the administration wants to promote. "This may be the single dumbest way imaginable to pursue American dominance in AI," said one tech official from a major industry group that also served in the first Trump administration. "It's like kneecapping yourself at the starting line."
Lobbyists say they have repeatedly urged officials to "tread carefully" because U.S. demand is surging while domestic chip capacity remains far too limited. The industry argues that factories take years to build and current domestic production cannot come close to satisfying demand.
One tech representative said "the math literally just does not work," noting that proposed duty-free allowances "wouldn't cover the hyperscalers alone." Meanwhile, the Computer and Communications Industry Association warned that higher costs and uncertainty could put the massive data-center buildout "in jeopardy."
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