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Reason
Reason
Jack Nicastro

Trump's 25 Percent Tariff on Chip Imports Is Really an Export Tax

On January 14, President Donald Trump issued an executive order slapping a 25 percent import tariff on advanced semiconductors commonly used in AI data centers.

Trump imposed the duty in response to a Commerce Department investigation that concluded imported semiconductors "threaten to impair the national security of the United States." The order specifies that the importation of "semiconductors that enable artificial intelligence (AI) [poses] a threat to the national security."

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