--- title: "Trump’s Tariffs Are Wreaking Havoc on the AI Industry He Claims to Support" description: "President Donald Trump's chaotic tariffs hit US-based AI chipmaker Nvidia's stock, wreaking havoc with the AI industry he claims to support." date: "2025-02-03" modified: "2025-02-03" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/trump-tariffs-ai" categories: - "Artificial Intelligence" tags: - "donald trump" - "tariffs" - "the digest" --- # Trump’s Tariffs Are Wreaking Havoc on the AI Industry He Claims to Support ![President Donald Trump's chaotic tariffs hit US-based AI chipmaker Nvidia's stock, wreaking havoc with the AI industry he claims to support.]() *\Image: Chip Somodevilla / Getty Images\* ## Below the Belt President Donald Trump's chaotic tariffs hit US-based AI chipmaker Nvidia's stock, as it slid over five percent when trading began on Monday before recovering by a few points. Over the weekend, Trump [announced]() an additional ten percent tariff on Chinese imports and 25 percent on those from Mexico and Canada, though he [later said]() the Mexico tariffs had been delayed a month. The whole kerfuffle appears to have taken investors by surprise, as they had initially discredited Trump's earlier threats of introducing tariffs. Even [markets in Asia and Europe]() were shaken as a result. And Nvidia, which was already still [reeling from a comeuppance]() by Chinese AI startup DeepSeek [upending Silicon Valley last week](), felt the hurt. Meanwhile, [*Bloomberg* reported last week]() that Trump administration officials are considering additional curbs on exports of Nvidia chips to China, which would extend Nvidia's losses even further. In other words, the whole situation is a mess of promises, takesies-backsies, and generalized chaos — a morass that serves as a reality check on Trump's early promises to support the AI industry. ## Stargate Fate Trump's tariffs are also expected to raise prices for AI data server equipment, which could weaken demand. The US heavily relies on importing data processing equipment from China, as [*Yahoo Finance* reports](). Nvidia's latest Blackwell AI chips will also soon be manufactured in a facility that's [currently being constructed in Mexico](). In short, Trump's actions have already proven a massive self-own, giving a black eye to a key ally while laying groundwork for China to soar ahead in the ongoing AI race. DeepSeek's success, despite Biden administration-era export bans on AI chips, has already shown that international competitors can easily circumnavigate US protectionist measures, hitting markets where it hurts. In the wake of Trump's tariffs, experts are warning that consumer prices, particularly in the US, [could rise substantially](). Even Trump's own [flashy $500 billion Stargate AI infrastructure deal]() could be threatened. Signees of the project are looking to build out enormous multibillion-dollar data centers, and import duties on crucial equipment could hinder their progress. **More on DeepSeek:** *[New Law Would Make It Illegal to Use DeepSeek, Punishable With 20 Years' Prison Time]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()