The Trump administration is reportedly considering broad tariffs on semiconductors and products containing them, prompting concern from US technology trade groups that the policy could hinder rather than strengthen America’s artificial intelligence sector. The proposed measures matter because data centres, consumer devices and AI developers depend heavily on imported chips and hardware, and higher costs could slow investment, innovation and adoption.

One option would extend duties beyond chips to servers, gaming consoles and potentially used or refurbished products, although the final framework remains unsettled and may be phased in. The Computer and Communications Industry Association estimated that such tariffs could reduce US GDP by about $90 billion annually and delay or cancel roughly 20 per cent of planned data-centre projects through 2030; exemptions may be linked to foreign companies investing in US chip manufacturing. This comes amid an existing global shortage of high-end chips expected to persist into 2027, with Gartner forecasting global semiconductor revenue of $1.6 trillion in 2026.