Trump says he’ll put tariffs on imported chips ‘in the near future’
Jan 28, 2025 - theverge.com
Donald Trump announced plans to impose tariffs on foreign computer chips, semiconductors, and pharmaceuticals, aiming to incentivize domestic production without relying on subsidies like those from the CHIPS Act. Speaking at the House GOP Issues Conference, he criticized the current administration's approach and suggested that manufacturers would prefer avoiding taxes over receiving financial incentives. Despite the previous trade war with China, which increased China's trade surplus with the US, Trump believes these tariffs will encourage more domestic manufacturing. However, a report cited by _TechCrunch_ warns that such tariffs could significantly raise consumer prices on electronics.
Trump also mentioned DeepSeek's AI developments, expressing optimism about their potential to create faster and cheaper AI solutions. He contrasted this with the substantial investments planned by companies like OpenAI and Softbank, which are preparing to spend $500 billion on AI datacenters. Trump claimed that more manufacturing plants would be built soon due to these incentives, though it remains uncertain how many will resemble projects like The Stargate Project's first plant, which predates his administration.
Key takeaways:
Donald Trump announced upcoming tariffs on foreign computer chips, semiconductors, and pharmaceuticals.
He criticized the CHIPS Act subsidies and suggested tariffs as an incentive for manufacturers to return production to the US.
A report cited potential price increases on electronics due to Trump's proposed tariffs.
Trump mentioned DeepSeek's AI developments as positive, despite other companies planning significant investments in AI infrastructure.
