CHIPS Tariffs…

Former President Donald Trump announced plans for a 25% tariff on imported chips by April 2, with potential increases throughout 2025. Similar tariffs are also planned for automobiles and pharmaceuticals. The goal is to encourage foreign chipmakers to invest in U.S.-based manufacturing instead of importing semiconductors.

A 10% tariff on goods from China, set to start in March, is already expected to drive up consumer tech prices. Companies like Acer have announced price hikes of up to 10% in response.

The effects on consumers are unclear, as many electronics—like CPUs, GPUs, and other chips—are manufactured globally. For example, Nvidia’s high-end GeForce 5000 series GPUs, which already cost up to $3,000, could surge to $3,750 with the new tariffs.

Trump also hinted that these tariffs could rise even more over time to pressure companies to build U.S. factories. If implemented, these increases could significantly raise prices across the tech and auto industries.