Author: Ahmad Shadid from O.xyz
Although U.S. President Trump has implemented tariff exemptions for semiconductors, the actual significance is limited, as most semiconductors enter the U.S. through complete systems such as servers, GPUs, laptops, and smartphones.
These complete systems still face heavy taxes of up to 49%, and the actual execution of semiconductor exemptions has provided almost no substantial help. For example, Nvidia's DGX systems are not exempt and may face tariffs of nearly 40%. This cost increase may hinder the development of AI infrastructure projects.
The impact of the new tariffs has begun to slow the progress of supply chains, particularly affecting the development of mature generative AI and large language models in fields such as finance and defense.
The indirect impact of tariffs on AI
The modern semiconductor supply chain is globalized, and exempting semiconductors themselves is of little significance. High tariffs on other products indirectly raise costs, erasing any competitive advantage of domestic manufacturing.
Tariff deadlock hinders investment
The uncertainty of tariffs hinders investment decisions in the tech industry, as companies need stable costs to support large investments. However, ongoing tariff fluctuations prevent them from capitalizing on new data centers and production lines.
Encouraging domestic production has had very little effect
Although tariff measures aim to promote domestic production, their actual effect is limited. Most U.S. semiconductor companies still heavily rely on international manufacturers, and rising equipment and operational costs have led to a competitive disadvantage.
AI projects face risks
The blockchain and cryptocurrency industry, especially AI-driven projects, are also feeling the pressure. Increased hardware costs directly impact profitability and growth, potentially hindering innovation in blockchain applications.
These cost pressures have a particularly severe impact on startups, as industry giants can absorb the extra costs, but small businesses face existential threats.
Expected Outlook
Although semiconductors temporarily escaped direct tariffs, the benefits of exemptions are limited. Continued high tariffs have raised the industry's indirect costs and may lead to economic stagnation and delays in important projects, weakening the U.S. leading edge in AI innovation. Policymakers must address these issues and adjust their strategies before irreversible damage occurs.
Author: Ahmad Shadid from O.xyz.
This article is for general information only. It represents the author's personal views.