The tech industry is sounding alarms over President Trump’s proposed tariffs on semiconductors, warning of supply shocks, higher prices, and weakened global competitiveness. The Trump administration launched a national security investigation into semiconductor imports this week, signaling tariffs may soon follow.
Commerce Secretary Howard Lutnick hinted the tariffs could target both chips and consumer electronics like smartphones and laptops. Customs guidance initially exempted 20 product types, but Lutnick later suggested those exclusions are temporary.
Industry leaders, including the Information Technology Industry Council and Silicon Valley Leadership Group, warned the tariffs could drive up costs across the tech sector and slow innovation in artificial intelligence and cloud computing. Chipmakers like Nvidia and AMD are bracing for major impacts, with Nvidia alone expecting a $5.5 billion hit from new export restrictions.
Trump argues the tariffs will encourage domestic production. While Nvidia pledged to invest $500 billion in U.S.-based chip facilities, experts say most firms cannot relocate manufacturing quickly or affordably.
Sources
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
