White House warns AI chip tariffs are just ‘phase one’ of broader semiconductor action

The White House has indicated that the tariffs on semiconductors recently announced are just a 'phase one' initiative, suggesting further actions may be forthcoming. The 25% levy targets a specific category of advanced AI chips and raises concerns about trade uncertainties. This initial measure has been adopted under national security claims, focusing on high-performance processors used for advanced computing. Following comments from a White House official about ongoing negotiations, it seems that the administration wishes to maintain pressure on global chip manufacturers and trading partners. While currently the focus is on a limited set of AI chips, the mention of additional phases indicates an escalation risk that could encompass a wider range of semiconductors and technology products, potentially increasing costs significantly across various sectors. At present, markets are treating these statements as conditional threats rather than immediate actions. However, the clear reference to further steps has injected renewed uncertainty into already strained supply chains. Companies and foreign governments are likely to ramp up lobbying efforts for exemptions, while simultaneously localizing production to mitigate potential trade actions from the U.S. Overall, the administration’s message remains that the AI chip tariffs are only the beginning, keeping technology markets on high alert.