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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.

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AI industry says Trump plans to tax chips in the “single dumbest way imaginable”
Source: Ars Technica

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.”

About eight people familiar with the Trump administration’s plans were granted anonymity to discuss how the tariffs might work. They suggested that the framework for tariffs may change as it becomes finalized, but one approach under consideration could “dramatically expand the number of tech products subject to the duties, hitting not just chips but potentially many of the goods made with them, such as gaming consoles or the servers that fill data centers.”

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