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The Trump administration is preparing new tariffs on imported semiconductors that could also cover data center servers, laptops and gaming consoles. The plan may offer tariff exemptions based on companies’ US chipmaking investments. Technology groups warn higher hardware costs could slow data center expansion and undermine America’s push for global AI leadership.

The Trump administration is preparing a fresh round of tariffs on imported semiconductors that could extend well beyond raw chips to cover finished hardware such as data center servers, laptops and gaming consoles. The move has drawn strong objections from technology industry leaders, who argue it risks undermining America's push to stay ahead in the global race for AI dominance.

Tariff relief tied to domestic investment

Politico reports that at the centre of the proposed framework is a mechanism championed by Commerce Secretary Howard Lutnick that would link tariff exemptions to a company's investment in US-based chip fabrication. Under this approach, firms would be allowed to import a set volume of semiconductors duty-free, with the size of that allowance tied to how much manufacturing capacity they commit to building domestically.

Officials are said to be examining tiered tariff rates and import caps that would vary by trading partner and by the size of their leading semiconductor manufacturers. A phased rollout of the new tariffs is also reportedly under discussion, though those familiar with the talks caution that the plan could still change substantially before finalisation.