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Trump eyes tariffs on semiconductors in push to boost US tech manufacturing

US President Donald Trump is preparing to introduce new tariffs on semiconductor imports, aiming to shift more chip production back to the United States.

Semiconductors, or microchips, are essential components in everything from smartphones and laptops to medical devices and renewable energy systems.

Speaking aboard Air Force One, Trump said new tariff rates would be announced soon as part of a broader effort to end American reliance on foreign-made chips and strengthen national security.

The global semiconductor supply chain is heavily concentrated in Asia, with Taiwan’s TSMC producing over half of the world’s chips and supplying major companies like Apple, Microsoft, and Nvidia.

Trump’s move signals a more aggressive stance in the ongoing ‘chip wars’ with China, as his administration warns of the dangers of the US being dependent on overseas production for such a critical technology.

Although the US has already taken steps to boost domestic chip production—like the $6.6 billion awarded to TSMC to build a factory in Arizona—progress has been slow due to a shortage of skilled workers.

The plant faced delays, and TSMC ultimately flew in thousands of workers from Taiwan to meet demands, underscoring the challenge of building a self-reliant semiconductor industry on American soil.

Why does it matter?

Trump’s proposed tariffs are expected to form part of a wider investigation into the electronics supply chain, aimed at shielding the US from foreign control and ensuring long-term technological independence. As markets await the announcement, the global tech industry is bracing for potential disruptions and new tensions in the international trade landscape.

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Nvidia expands AI chip production in the US amid political pressure and global shifts

Nvidia is significantly ramping up its presence in the United States by commissioning over a million square feet of manufacturing space in Arizona and Texas to build and test its powerful AI chips. The tech giant has begun producing its Blackwell chips at TSMC facilities in Phoenix and is developing large-scale ‘supercomputer’ manufacturing plants in partnership with Foxconn in Houston and Wistron in Dallas.

The company projects mass production to begin within the next 12 to 15 months, with ambitions to manufacture up to half a trillion dollars’ worth of AI infrastructure in the US over the next four years. CEO Jensen Huang emphasised that this move marks the first time the core components of global AI infrastructure are being built domestically.

He cited growing global demand, supply chain resilience, and national security as key reasons for the shift. Nvidia’s decision follows an agreement with the Trump administration that helped the company avoid export restrictions on its H20 chip, a top-tier processor still eligible for export to China.

Nvidia joins a broader wave of AI industry leaders aligning with the Trump administration’s ‘America-first’ strategy. Companies like OpenAI and Microsoft have pledged massive investments in US-based AI infrastructure, hoping to secure political goodwill and avoid regulatory hurdles.

Trump has also reportedly pressured key suppliers like TSMC to expand American operations, threatening tariffs as high as 100% if they fail to comply. Despite the enthusiasm, Nvidia’s expansion faces headwinds.

A shortage of skilled workers and potential retaliation from China—particularly over raw material access—pose serious risks. Meanwhile, Trump’s recent moves to undermine the Chips Act, which provides critical funding for domestic chipmaking, have raised concerns about the long-term viability of US semiconductor investment.

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US exempts key electronics from China import taxes

Smartphones, computers, and key tech components have been granted exemption from the latest round of US tariffs, providing relief to American technology firms heavily reliant on Chinese manufacturing.

The decision, which includes products such as semiconductors, solar cells, and memory cards, marks the first major rollback in President Donald Trump’s trade war with China.

The exemptions, retroactively effective from 5 April, come amid concerns from US tech giants that consumer prices would soar.

Analysts say this move could be a turning point, especially for companies like Apple and Nvidia, which source most of their hardware from China. Industry reaction has been overwhelmingly positive, with suggestions that the policy shift could reshape global tech supply chains.

Despite easing tariffs on electronics, Trump has maintained a strict stance on Chinese trade, citing national security and economic independence.

The White House claims the reprieve gives firms time to shift manufacturing to the US. However, electronic goods will still face a separate 20% tariff due to China’s ties to fentanyl-related trade. Meanwhile, Trump insists high tariffs are essential leverage to renegotiate fairer global trade terms.

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Meta under fire for scrapping diversity and moderation policies

The NAACP Legal Defense Fund (LDF) has withdrawn from Meta’s civil rights advisory group, citing deep concerns over the company’s rollback of diversity, equity and inclusion (DEI) policies and changes to content moderation.

The decision follows Meta’s January announcement that it would end DEI programmes, eliminate factchecking teams, and revise moderation rules across its platforms.

Civil rights organisations, including LDF, expressed alarm at the time, warning that the changes could silence marginalised voices and increase the risk of online harm.

In a letter to Meta CEO Mark Zuckerberg, they criticised the company for failing to consult the advisory group or consider the impact on protected communities. LDF’s Todd A Cox later said the policy shift posed a ‘grave risk’ to Black communities and public discourse.

LDF also noted that the company had seen progress under previous DEI policies, including a significant increase in Black and Hispanic employees.

Its reversal, the group argues, may breach federal civil rights laws and expose Meta to legal consequences.

LDF urged Meta to assess the effects of its policy changes and increase transparency about how harmful content is reported and removed. Meta has not commented publicly on the matter.

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Microsoft users at risk from tax-themed cyberattack

As the US tax filing deadline of April 15 approaches, cybercriminals are ramping up phishing attacks designed to exploit the urgency many feel during this stressful period.

Windows users are particularly at risk, as attackers are targeting Microsoft account credentials by distributing emails disguised as tax-related reminders.

These emails include a PDF attachment titled ‘urgent reminder,’ which contains a malicious QR code. Once scanned, it leads users through fake bot protection and CAPTCHA checks before prompting them to enter their Microsoft login details, details that are then sent to a server controlled by criminals.

Security researchers, including Peter Arntz from Malwarebytes, warn that the email addresses in these fake login pages are already pre-filled, making it easier for unsuspecting victims to fall into the trap.

Entering your password at this stage could hand your credentials to malicious actors, possibly operating from Russia, who may exploit your account for maximum profit.

The form of attack takes advantage of both the ticking tax clock and the stress many feel trying to meet the deadline, encouraging impulsive and risky clicks.

Importantly, this threat is not limited to Windows users or those filing taxes by the April 15 deadline. As phishing techniques become more advanced through the use of AI and automated smartphone farms, similar scams are expected to persist well beyond tax season.

The IRS rarely contacts individuals via email and never to request sensitive information through links or attachments, so any such message should be treated with suspicion instead of trust.

To stay safe, users are urged to remain vigilant and avoid clicking on links or scanning codes from unsolicited emails. Instead of relying on emails for tax updates or returns, go directly to official websites.

The IRS offers resources to help recognise and report scams, and reviewing this guidance could be an essential step in protecting your personal information, not just today, but in the months ahead.

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AI could be Geneva’s lifeline in times of crisis

International Geneva is at a crossroads. With mounting budget cuts, declining trust in multilateralism, and growing geopolitical tensions, the city’s role as a hub for global cooperation is under threat.

In his thought-provoking blog, ‘Don’t waste the crisis: How AI can help reinvent International Geneva’, Jovan Kurbalija, Executive Director of Diplo, argues that AI could offer a way forward—not as a mere technological upgrade but as a strategic tool for transforming the city’s institutions and reviving its humanitarian spirit. Kurbalija envisions AI as a means to re-skill Geneva’s workforce, modernise its organisations, and preserve its vast yet fragmented knowledge base.

With professions such as translators, lawyers, and social scientists potentially playing pivotal roles in shaping AI tools, the city can harness its multilingual, highly educated population for a new kind of innovation. A bottom-up approach is key: practical steps like AI apprenticeships, micro-learning platforms, and ‘AI sandboxes’ would help institutions adapt at their own pace while avoiding the pitfalls of top-down tech imposition.

Organisations must also rethink how they operate. AI offers the chance to cut red tape, lighten the administrative burden on NGOs, and flatten outdated hierarchies in favour of more agile, data-driven decision-making.

At the same time, Geneva can lead by example in ethical AI governance—by ensuring accountability, protecting human rights and knowledge, and defending what Kurbalija calls our ‘right to imperfection’ in an increasingly optimised world. Ultimately, Geneva’s challenge is not technological—it’s organisational.

As AI tools become cheaper and more accessible, the real work lies in how institutions and communities embrace change. Kurbalija proposes a dedicated Geneva AI Fund to support apprenticeships, ethical projects, and local initiatives. He argues that this crisis could be Geneva’s opportunity to reinvent itself for survival and to inspire a global model of human-centred AI governance.

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China halts rare earth exports in trade war escalation

Exports of critical rare earth minerals and magnets from China have ground to a halt following new export restrictions, threatening global supply chains across the semiconductor, automotive, defence, and energy sectors.

The suspension took effect on 4 April, after Beijing imposed strict new licensing requirements in response to steep United States tariffs introduced by President Donald Trump.

China dominates the global supply of rare earth materials such as dysprosium and terbium, which are essential for manufacturing everything from electric vehicles to drones and missiles.

Industry insiders say licence applications could take up to several months to process, sparking fears of shortages if the halt persists beyond two months. Traders estimate shipments might resume after at least 60 days, but delays could stretch further.

Trump defended the tariffs, claiming they are necessary to address trade imbalances, particularly with China. He hinted at further tariffs targeting semiconductors and electronic devices, while his commerce secretary confirmed that smartphones and laptops may also be subject to new levies.

Critics, including Senator Elizabeth Warren, have condemned the approach, warning it will lead to confusion and instability in global markets.

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Tariffs raise Bitcoin mining costs in the US

US Bitcoin miners are facing increased costs due to new tariffs on Chinese-made mining equipment. The White House announced a 125% import tax on Chinese goods, adding to previous tariffs. It has led to a 145% increase in tariffs on Chinese imports since President Trump took office.

Bitcoin mining hardware manufacturers in Southeast Asia, including Bitmain and MicroBT, are being hit hardest by the tariffs.

US-based miners who rely on this equipment are facing higher buildout costs. Some are considering shifting operations abroad to remain competitive.

Despite the challenges, some believe these disruptions are temporary. US firms are onshoring production, while miners are urged to diversify supply chains and turn to domestic manufacturers.

However, the tariffs could slow US mining growth and shift activity to more cost-effective regions.

For more information on these topics, visit diplomacy.edu.

Crypto wallet user acquisition costs soar in gaming campaigns

Crypto gaming and gambling campaigns are the most expensive way to acquire crypto wallet users, with a median cost per wallet (CPW) of $8.74. DeFi and CeFi campaigns are far cheaper, with a median CPW of $2.79.

Axie Infinity’s Jeff Zirlin views the high costs as an opportunity for strategic growth, urging Web3 teams to prepare for future expansion. Meanwhile, regional differences show that CPWs in the US and Western Europe surged in 2024.

In contrast, emerging markets like Latin America and Eastern Europe remain more affordable but volatile.

The Web3 gaming sector is also struggling, with a significant drop in funding. Blockchain gaming saw a 71% decrease in investment in Q1 2025, highlighting ongoing challenges for the industry.

For more information on these topics, visit diplomacy.edu.

UAE experts warn on AI privacy risks in art apps

A surge in AI applications transforming selfies into Studio Ghibli-style artwork has captivated social media, but UAE cybersecurity experts are raising concerns over privacy and data misuse.

Dr Mohamed Al Kuwaiti, Head of Cybersecurity for the UAE Government, warned that engaging with unofficial apps could lead to breaches or leaks of personal data. He emphasised that while AI’s benefits are clear, users must understand how their personal data is handled by these platforms.

He called for strong cybersecurity standards across all digital platforms, urging individuals to be more cautious with their data.

Media professionals are also sounding alarms. Adel Al-Rashed, an Emirati journalist, cautioned that free apps often mimic trusted platforms but could exploit user data. He advised users to stick to verified applications, noting that paid services, like ChatGPT’s Pro edition, offer stronger privacy protections.

While acknowledging the risks, social media influencer Ibrahim Al-Thahli highlighted the excitement AI brings to creative expression. He urged users to focus on education and safe engagement with the technology, underscoring the UAE’s goal to build a resilient digital economy.

For more information on these topics, visit diplomacy.edu.