Trump's New Semiconductor Tariffs Could Hit AI Servers, Laptops, and Game Consoles

The Trump administration is reportedly considering new semiconductor tariffs, raising concerns among tech companies about potential impacts on U.S. leadership in artificial intelligence.

According to a POLITICO report Thursday, the proposed tariff plan could significantly expand the scope of tech products subject to tariffs. This may include goods manufactured using semiconductors, such as laptops, game consoles, and servers used in data centers.

Commerce Secretary Howard Lutnick reportedly favors a system that would tie tariff relief for foreign companies to their investments in U.S. chip manufacturing, aiming to boost domestic production.

The administration is also considering a phased transition period for implementing the new tariffs. However, the framework could undergo significant adjustments in the coming weeks or months.

Tech companies have reportedly begun lobbying efforts to persuade the Trump administration to soften the proposed tariffs, arguing that they would drive up costs and make it harder for U.S. firms to procure the massive volume of semiconductors needed for the AI boom, potentially hindering data center expansion.

The White House did not immediately respond to a request for comment.

Proposed Tariffs Could Threaten Big Tech's AI Ambitions

Experts say the proposed tariffs could impact the unprecedented spending surge by U.S. tech giants on artificial intelligence, including massive investments in data center campuses and the high-end chips required for their operations.

Jonathan McHale of the Computer & Communications Industry Association told POLITICO that the tariffs could raise costs and create uncertainty, endangering large-scale U.S. data center investments. He compared the current building spree to the construction of the transcontinental railroad.

"Any time you increase costs and decrease predictability, you make investment more difficult," McHale warned. "You're putting it at risk."

Notably, a recent analysis found that the U.S. has surpassed China in new natural gas power plant construction, driven largely by surging electricity demand from AI data centers. Natural gas projects under construction in the U.S. grew by 76% in the first half of the year, raising concerns about potential significant increases in greenhouse gas emissions if all planned projects are completed.

Earlier this year, reports indicated the administration was considering broad chip tariffs while also planning exemptions to protect major tech companies like Amazon, Microsoft, and Alphabet's Google from rising chip costs. These exemptions were intended to support these companies' AI expansion plans.