The Trump administration is weighing a new round of semiconductor tariffs that could reach far beyond chips into laptops, gaming consoles and the servers that fill data centers, according to a Politico report citing about eight people familiar with the plans.
The framework is still being finalized, but one approach under consideration would dramatically expand the number of tech products subject to duties, potentially scrapping exemptions that have protected data center equipment. Officials said tariffs could be imposed in the coming weeks or months, possibly in phases.
The tech industry is pushing back hard. The Computer and Communications Industry Association estimated the approach could cost the US about $90B annually in GDP and delay or cancel around 20 percent of data center projects planned through 2030. Trade groups have warned that taxing downstream goods would raise prices on smartphones, laptops and other everyday devices, and could push data center development outside the US.
To shield AI firms, the administration is considering relief tied to foreign companies investing in US chip manufacturing, an approach Commerce Secretary Howard Lutnick is said to favor.
The tariff talk lands as the industry faces a chip shortage that Gartner expects to push 2026 semiconductor revenue to $1.6T, and days after Washington leaned on the Netherlands to restrict ASML tool sales to China. Industry leaders have called the plan one of the worst possible ways to win the AI race, arguing that taxing the machines that run AI would slow adoption at the moment the US is trying to lead it.
