Industry says Trump plans to tax chips in the "single dumbest way imaginable

The tech industry is warning that proposed new semiconductor tariffs under Donald Trump could arrive at a damaging moment for AI development in the US. Reporting by Politico said a range of new duties could be imposed in the “weeks or months” ahead, based on discussions with eight people familiar with the administration’s plans. One approach under consideration would greatly expand which tech products face tariffs, potentially reaching not only chips but also downstream goods such as gaming consoles and data-center servers. Trade groups have previously warned that taxing semiconductors and many connected products—possibly even refurbished units—could be disastrous for the broader economy. A CCIA estimate put annual GDP losses around $90 billion and suggested 20% of data-center projects planned through 2030 could be delayed or canceled.