AI industry says Trump plans to tax chips in the “single dumbest way imaginable” (arstechnica.com)

The AI industry is bracing for potential new semiconductor tariffs proposed by former President Donald Trump, which could severely impact innovation in artificial intelligence within the United States. Reports suggest that these tariffs could target a wide array of tech products, not just semiconductors, potentially including gaming consoles and data center servers. Many in the tech community fear that such sweeping measures, aimed at reshoring manufacturing, would be disastrous, risking an estimated $90 billion in annual GDP losses and delaying or canceling about 20% of planned data center projects through 2030. This situation highlights the tension between policy and technological advancement, especially as the tariffs threaten to drive more data center development overseas rather than bolster domestic growth. The Computer and Communications Industry Association (CCIA) and numerous trade groups warn that these tariffs would disrupt supply chains and innovation momentum, countering the very goals of the AI Action Plan that prioritize strengthening the U.S. tech industry. The potential inclusion of refurbished products under these tariffs could further complicate access for AI developers, jeopardizing the competitive edge of U.S. firms in the global AI landscape.