Trump threatens tariffs on semiconductors as CHIPS Act faces scrutiny

President Donald Trump has threatened to impose tariffs on semiconductors and alter federal contracts with chipmakers. This could hinder the tech industry, which relies on the CHIPS and Science Act aimed at boosting domestic chip production. The CHIPS Act has already provided $30 billion for projects to increase U.S. chip manufacturing. It aims to reduce reliance on foreign suppliers, particularly from Asia, and has created thousands of jobs since its implementation. Experts warn that new tariffs could raise prices for consumers on products that use chips, such as smartphones and cars. This could negatively impact the U.S. economy and the growth of the artificial intelligence sector.