Washington – The Computer & Communications Industry Association joined 4 other tech trade associations in a letter to President Trump on how his proposed 232 tariffs on semiconductors, robots, and industrial machinery, most of which come from trusted trade partners, will undermine his other policy goals of leading in AI, manufacturing, and improving national security. The signatories note that, “Broad Section 232 tariffs on semiconductors, robotics, and other critical technology inputs would increase the cost of building semiconductor fabrication plants, AI data centers, advanced manufacturing facilities, and robotics production lines across the United States.”

CCIA’s Research Center has calculated the costs of the 232 semiconductor tariffs and found that applying 25 percent Section 232 semiconductor tariffs to data centers would mean a 15.6 percent tax on construction and would cost the US $90 billion a year over the next 4 years.

“We understand the goal of these tariffs is to increase the production of high-technology goods in the US. Given the unprecedented domestic demand for products covered by these 232s, including the historical investment in AI and factory automation, tariffs at this point will be counterproductive. It will take years to meet that demand through onshored production, and in the interim, a tariff only cripples investment, handicaps export competitiveness, and raises costs for producers and consumers alike. If the goal is to make U.S. firms more competitive and be able to access the foreign markets they need to prosper, this will do the opposite—diminish their competitiveness and handicap their ability to export. We encourage the Administration to reconsider new tariffs in light of broader policy goals like AI leadership.”

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