How Trump's Tariffs Could Reshape the Tech & AI Industry

Markets just took a hit—what Donald Trump did over the weekend could change the entire tech game.

The Indian markets closed with a 0.5% drop, reacting to:

• The Union Budget 📉
• Tariff tensions triggered by Trump's latest announcement

🔥 What Happened?

On Saturday, former US President Donald Trump declared:
🚨 10% duty on all imports from China
🚨 25% tariff on imports from Mexico & Canada
🚨 100% tariff (under discussion) on Taiwanese semiconductors

Tariffs = Extra taxes paid by US importers for goods brought from foreign countries.

A 10% tariff on Chinese imports means higher costs for US companies & consumers.
And when one country imposes tariffs, the others retaliate:
✅ China may hit back with tariffs on US goods
✅ Canada already announced a 25% retaliatory tariff

😨 Who Suffers in This Tariff War?

You. 🫵

An increase in tariffs/taxes gets passed on to the final consumer.

• China makes 35% of the world's electronics—expect prices to rise 📈
• Semiconductors become a critical pain point if Taiwan tariffs are implemented

🏆 Why Semiconductors Matter

Semiconductors are the backbone of all electronics:
📲 Smartphones
🚗 EVs
🌍 5G networks
🤖 AI tools

But Taiwan dominates the semiconductor industry:
🔹 TSMC holds 64.9% of the global market [1]
🔹 The industry is growing at a 14.9% CAGR [2]

If Trump’s 100% tariff is imposed, US chip prices could rise by up to 59%.
This could make AI hardware significantly more expensive 💸

🚀 How Nvidia & AI Could Be Affected

✅ Nvidia controls 70-95% of the AI chip market [3]
✅ Relies on TSMC (Taiwan) for AI chip production
🚨 Higher tariffs = Higher costs

Meanwhile, China’s DeepSeek is making waves in AI with a cost-effective AI model, powered by Nvidia’s H800 chips.

Result?

• Nvidia stock drops 17% 📉
• Investors question the future of AI hardware pricing

🤯 The Semiconductor War: More Than Just Tech

This is no longer just about technology—it’s about:
🌍 Geopolitics
🔗 Supply chains
💰 Pricing power

If Trump’s tariffs come into play, the entire AI & tech industry may be forced to rethink its strategy & relocate.

🔎 How do you see this playing out? 🚀