Semiconductors exempted from US tariffs deliver little practical benefit as finished goods like servers and GPUs face steep duties of up to 49%. For companies like Nvidia, the lack of exemption for critical systems means they could pay tariffs nearing 40%, jeopardizing AI infrastructure initiatives. While the CHIPS Act aims to bolster US chip manufacturing with subsidies, tariffs on essential equipment from international sources hinder progress. The ongoing tariff uncertainty causes investment paralysis in the tech sector, reminiscent of the supply chain disruptions of 2020, which may lead to significant order cancellations. Furthermore, the assumption that tariffs would promote domestic production is flawed; companies largely rely on international foundries and face rising costs instead. The blockchain and AI sectors, which depend on high-performance tech for development, are particularly affected, risking innovation and growth for smaller firms. Ultimately, existing tariffs inhibit technological advancement rather than providing protection or support.

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