AI industry says Trump plans to tax chips in the “single dumbest way imaginable”
The tech industry is criticizing the Trump administration's proposed semiconductor tariffs, warning they could hinder AI innovation and cause significant economic losses. Industry groups argue that taxing chips and downstream products will delay data center projects and drive development overseas.
Why it matters
These tariffs could fundamentally alter the cost structure of AI infrastructure and impact the U.S. government's own goals for AI leadership.
“Math just does not work” AI industry says Trump plans to tax chips in the “single dumbest way imaginable” Tech industry is perplexed by Trump’s plan to win AI race by taxing data centers.
94 Credit: LUDOVIC MARIN / Contributor | AFP Credit: LUDOVIC MARIN / Contributor | AFP Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav Donald Trump may be preparing to announce sweeping new semiconductor tariffs at the absolute worst time, the tech industry fears.
On Thursday, Politico reported that a wide range of new semiconductor tariffs, which the tech industry expects will “doom” artificial intelligence innovation in the US, could be imposed in the coming “weeks or months.”
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