The Trump administration is considering sweeping semiconductor tariffs that could extend beyond chips to include downstream products like servers, gaming consoles, and consumer devices, alarming the tech industry at a critical moment in AI infrastructure development. Industry groups warn the tariffs could cost the US $90 billion annually in GDP, delay or cancel roughly 20% of planned data centre projects, and ultimately undermine the very AI dominance Trump claims to be pursuing — since domestic chip manufacturing capacity won't be ready in time to replace imports. Despite intensive lobbying efforts, talks between the tech industry and Trump officials have reportedly trended in a negative direction, with Commerce Secretary Howard Lutnick pushing for broad tariff application tied to companies pledging domestic production commitments.
