Opinion: Ahmed Shadie O.Xyz
Semi -conductors recorded a rare exemption from the mutual definitions of US President Donald Trump, but relief is symbolic at best. Most of the semiconductors enter the United States included in servers, graphics processing units, laptops and smartphones.
The final goods remain a large tariff, some with duties of up to 49 %. The exemption looks good political but provides a small practical benefit. DGX systems from NVIDIA, and are decisive to train artificial intelligence models, under exempt HTS symbols. NVIDIA can pay an effective tariff approaching 40 % on these vital ingredients. These costs threaten to stop the infrastructure projects for the rule of artificial intelligence throughout the country.
The customs tariffs of semi -conductors may display the goal of the chips law. The law promised tens of billions of dollars as support to support the manufacture of local chips. However, advanced stone printing machines – the main equipment of countries like the Netherlands and Japan – face a 20 % tariff to 24 %. Ironically, the customs tariff designed to enhance American production increases the cost of basic manufacturing equipment.
The effect of the new customs tariffs already slows the progress in critical supply chains – just as artificial intelligence and large language models are momentum across sectors such as financing and defense. Any delay or increase in cost now may be the advantage of American technology.
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Semiconductor supply chains are very universal and integrated. The raw silicone exemption does not mean anything when you face servers, GPU and other end -to -slope tariffs. An indirect tariff tariff, which eliminates any competitive advantage of local manufacturing.
The costs of indirect tariffs have struck unparalleled systems. The impact through training on the artificial intelligence model, data center expansion, and major infrastructure projects, which greatly slows the momentum of industry.
Exit tariff, stop investment
So far, it is clear that the US President’s tariff plan has not followed any traditional or calculated economic trends. Fine unconfirmed tariffs of investment decisions in the technology sector. Companies need predictable costs to justify large capital expenses. It prevents their continuous tariff fluctuations from committing resources for new data centers and manufacturing lines.
This reflects the chain of the 2020 supply chain. At that time, uncertainty causes huge orders and slowing the industry recovery for years. If the ambiguity of the tariff continues, we may see similar waves of cancellation in 2025. This would increase the increase in inventory issues and current revenues in the semiconductor sector.
Local production is not optimal
The border argument for these definitions is that it aims to enhance local production. However, they do not do a little to encourage the production of real local semiconductors. Despite the subsidies under the Chips Law, most US -conducting companies are still dependent on the international industrial Mascuk. Instead, they face increased equipment and operating costs.
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The idea that the definitions enhance local production ignore the reality of the manufacture of semiconductors. The costs rise in all fields, and put American companies in a non -favorable position instead of providing protection.
Artificial intelligence projects face the increasing risks
Blockchain and Crypto sectors, especially the projects driven by artificial intelligence, feel the picnic. Projects depend greatly on high -performance graphics and servers units, verifying the health of transactions and operating decentralized artificial intelligence accounts. Increasing the costs of devices directly affect profitability and growth, and innovation may stop in Blockchain applications.
Developments have just started artificial intelligence in picking a pace in the Blockchain and Web3 space. The industry witnessed an increase in interest from investors and VCS just one year ago. Therefore, they are still on more strict budgets. However, high costs can lead to recession. We may see creators and developers coming out of the market. The impact of ripple extends beyond the public technology sector and can threaten future digital economies.
Moreover, these cost pressure affects non -proportionally on startups and smaller technology companies. The giants in the industry can accommodate additional expenses, but innovative players are smaller facing existential threats. These dynamic risks suffocate innovation at the popular level, which harms the ecosystem of the entire technology.
What do you expect
The semiconductors have escaped from the direct definitions for a moment, but the exemption provides a small benefit. The definitions continue to hit the final products, which leads to an increase in indirect costs throughout the industry. Instead of strengthening local manufacturing, these definitions create economic paralysis, stop critical infrastructure projects, and threaten America’s progress in creating artificial intelligence. Politics makers must recognize these facts and control their approach before the irreversible damage to the nation’s technological future occurs.
Opinion: Ahmed Shadi O.Xyz.
This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
