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3w ago

Trump's Tariffs Disrupt U.S. Tech and AI Sectors, Triggering Economic Uncertainty

Sweeping import tariffs raise costs for AI infrastructure, jeopardize major projects like Stargate, and cause sharp declines in Big Tech stocks.

A car drives past a building of the Digital Reality Data Center in Ashburn, Virginia, U.S., March 17, 2025. REUTERS/Leah Millis/File Photo
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Apple CEO Tim Cook looks on behind President Donald Trump and Vice President JD Vance after the two were sworn into office at an inauguration ceremony in the rotunda of the U.S. Capitol in Washington on Jan. 20, 2025.
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Overview

  • President Donald Trump has implemented steep tariffs on foreign imports, including 34% on China and 32% on Taiwan, with a 10% baseline tariff on all imports to the U.S.
  • The tariffs are significantly increasing costs for AI infrastructure, with data-center equipment and materials becoming more expensive, affecting projects like the $500 billion Stargate initiative.
  • Big Tech companies, including Alphabet, Amazon, and Microsoft, are reallocating spending priorities and scaling back expansion plans due to heightened financial pressures.
  • The Nasdaq fell 4% as major tech firms saw sharp stock declines, with Apple, Amazon, and Nvidia experiencing some of their largest single-day losses in years.
  • The tariffs are part of a broader strategy to encourage reshoring production to the U.S., but industry experts warn of high economic risks and potential long-term challenges for the tech sector.