President Trump announced that tariffs on semiconductors will be imposed "very soon" during a White House press briefing. Although previous global tariffs have affected the stock market significantly, semiconductors were initially exempted. Most electronics sold in the U.S. rely on chips manufactured in Asia, meaning tariffs could significantly impact consumer prices.
Nintendo has already delayed U.S. pre-orders for the Switch 2 due to tariff concerns, and Klarna postponed its IPO amid global economic uncertainty. President Trump’s strategy aims to boost domestic technology manufacturing, but it also raises concerns about increased costs for American businesses and consumers.
Tariffs could lead to higher prices for chips. For example, a 25% tariff on an Nvidia AI GPU priced at $50,000 would result in an additional cost of $3,125 per unit. This could either reduce Nvidia’s profit margins or increase costs for American buyers.
While moving some manufacturing back to the U.S. may make sense for high-margin industries like chipmaking, it could take years and significant investment. Automation might play a crucial role in reshoring manufacturing, but tariffs could still make American goods less competitive globally.
— new from Gizmodo