AI Industry Warns Trump's Chip Tariff Plan Could Devastate Innovation

The tech industry fears the Trump administration may soon impose sweeping semiconductor tariffs at the worst possible time for AI development. Politico reports that the tariffs could be announced within weeks or months, and may apply not only to chips but also to products made with them, such as gaming consoles and data center servers.

People familiar with the plans said the framework is still evolving, but one approach being considered could dramatically expand the range of affected tech products. Industry observers warn this could severely harm US artificial intelligence innovation.

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