Short-Circuited: How Semiconductor Tariffs Would Harm the U.S. Economy and Digital Industry Leadership

Blanket tariffs on semiconductor imports could do more harm than good for the U.S. economy. According to ITIF, proposed 25% tariffs would lead to reduced economic growth, increased costs for everyday goods, and weakened U.S. competitiveness in industries like AI and automotive manufacturing. These price hikes would ripple through the economy, affecting everything from data centers and EV production to household budgets. Rather than boosting domestic manufacturing, such tariffs risk undercutting the very innovation they aim to support.