Trump threatens tariffs on semiconductors as CHIPS Act aims to boost U.S. production

President Donald Trump has threatened to impose tariffs on semiconductors and alter federal contracts with chipmakers. This move aims to boost U.S. chip production but may hinder the tech industry’s growth, particularly in artificial intelligence. The CHIPS and Science Act, which supports domestic chip manufacturing, has already provided $30 billion for projects that could create 115,000 jobs. Trump’s stance on tariffs and the CHIPS Act raises concerns about rising costs for consumers and potential setbacks for the U.S. AI sector. Experts warn that tariffs could increase prices for various consumer goods that rely on chips, affecting everything from smartphones to cars. The uncertainty surrounding U.S. chip policy may deter future investments in domestic manufacturing.