Trump's proposed changes to chip contracts and tariffs could impact AI growth and consumer prices

President Trump has threatened to change federal contracts with chipmakers and impose new tariffs on semiconductors, which could hinder the tech industry. This contrasts with the CHIPS and Science Act, aimed at boosting domestic chip production and AI research. The CHIPS Act has already provided $30 billion for projects to increase U.S. chip manufacturing, addressing shortages that affected various industries. Trump argues that companies should not rely on government funding but rather on incentives to build plants in the U.S. Experts warn that tariffs could raise prices for consumer goods that use chips, impacting everything from smartphones to cars. They suggest that such measures could harm the U.S. economy and the growth of the domestic chip industry.