Trump threatens tariffs on semiconductors as changes to CHIPS Act loom

President Trump has threatened to impose tariffs on semiconductors and alter federal contracts with chipmakers. This could hinder the tech industry, which relies on chip production for advancements in artificial intelligence. The CHIPS and Science Act, aimed at boosting U.S. chip manufacturing, has already provided $30 billion for projects that create jobs and increase domestic production. Trump's proposed changes may disrupt these efforts and raise costs for consumers. Experts warn that tariffs could lead to higher prices for various consumer goods that use chips, affecting everything from smartphones to cars. This could slow the growth of the U.S. AI sector and impact overall economic stability.