From Cointelegraph

May 22, 2025 11:00 AM:

Semiconductors received an exemption from US President Trump’s tariffs, but it offers little practical benefit as finished goods remain heavily tariffed, some up to 49%. The exemption may hinder the CHIPS Act goal of supporting domestic chip manufacturing by increasing costs for essential equipment. Tariffs could slow AI projects and compromise America’s technological advantage.

Indirect costs from tariffs inflate prices for high-end systems like GPUs and servers, slowing AI model training and infrastructure projects. Tariff uncertainty is stalling investment decisions in the tech sector as companies struggle with unpredictable costs. This echoes the supply chain chaos of 2020, potentially leading to more cancellations in 2025.

Tariffs aimed at boosting domestic production do little to encourage genuine US semiconductor manufacturing. Most companies still rely on international foundries, facing increased costs instead. The blockchain and crypto sectors, especially AI-driven projects, are also affected by higher hardware costs, threatening innovation and growth. Startups and smaller firms are at greater risk of facing existential threats due to elevated expenses.

Read more at Cointelegraph: Semiconductor exemptions don’t matter when it comes to tariffs