For consumers, prices of \u201ceveryday tools,\u201d like smartphones, laptops, tablets, smartwatches, connected devices, and vehicles, could increase at a time when US households are already budget-strained. Tariffs could also limit technology choices for Americans by delaying new product launches, including devices featuring the latest AI technologies. And any dampened demand for popular tech risks further limiting innovation while seemingly working in lockstep with tariffs to slow AI adoption in the US, the letter warned.<\/p>\n
\u201cConsumer devices are the primary interface through which Americans access AI-powered tools. AI only delivers on its promise when people can actually use it\u2014and tariffs that price consumers out of the device market would slow AI adoption at the very moment the United States is positioned to lead,\u201d the letter said.<\/p>\n
To shield AI firms, the Trump administration is mulling some tariff relief, but sources told Politico it would likely be tied to foreign firms investing in US chip manufacturing, like Taiwan Semiconductor Manufacturing Co. Apparently, that\u2019s the approach Commerce Secretary Howard Lutnick favors most.<\/p>\n
Perhaps mindful of the data center development timeline\u2014and possibly the upcoming holiday season, as Trump previously has exempted goods from tariffs to avoid consumer backlash<\/a> that negatively impacted his approval ratings\u2014the administration may impose tariffs in phases to avoid the worst impacts hitting all at once.<\/p>\n Industry talks with Trump turn \u201cnegative\u201d<\/p>\n