US Considers New Tariffs on Semiconductors and Tech Hardware

The White House did not immediately respond to CNBC's request for comment, but told Politico that "reshoring semiconductor manufacturing is a top priority for President Trump, whose policies have already secured hundreds of billions of dollars of investments in this key sector."

The tech industry is pushing back on the tariffs, warning they could raise chip costs, slow data-center construction, and undermine the very AI expansion the administration wants to promote. "This may be the single dumbest way imaginable to pursue American dominance in AI," said one tech official from a major industry group who also served in the first Trump administration. "It's like kneecapping yourself at the starting line." Lobbyists say they have repeatedly urged officials to "tread carefully" because US demand is surging while domestic chip capacity remains far too limited. Industry representatives argue that factories take years to build and current domestic production cannot come close to satisfying demand. One tech representative said "the math literally just does not work," noting that proposed duty-free allowances "wouldn't cover the hyperscalers alone." The Computer and Communications Industry Association warned that higher costs and uncertainty could put the massive data-center buildout "in jeopardy."