US Chip Tariffs Threaten Global Semiconductor Supply Chains

President Donald Trump has escalated trade tensions by threatening and planning to impose tariffs as high as 300% on imported semiconductor chips, a move that experts warn could severely disrupt the global semiconductor industry and lead to increased costs for consumer electronics such as smartphones, laptops, and medical devices. This protectionist strategy aims to bolster domestic production but risks significant collateral damage to international supply chains, particularly affecting countries like Malaysia and Taiwan that are key players in chip manufacturing. The tariffs exacerbate digital inequality within the U.S., making technology less affordable for low-income families and students who rely on devices for education and essential services, thereby widening the 'homework gap.' Trump's administration has also reversed previous export controls on advanced AI chips to China by introducing a 15% licensing fee, signaling a shift toward state intervention with an emphasis on generating revenue rather than restricting technology transfer. These developments, alongside high-profile geopolitical events such as the Trump-Putin summit with limited diplomatic progress, have introduced volatility in global markets and raised concerns about the long-term implications for technology innovation and economic stability. Industry leaders, including those from ASML B.V., warn that the tariffs could cause semiconductor manufacturing to 'grind to a halt,' highlighting the delicate balance between national security, economic policy, and global cooperation in the tech sector.