President Donald Trump's sweeping reciprocal tariffs could hamstring Big Tech's billion-dollar efforts to build artificial intelligence infrastructure in the country, likely undermining a key goal of the administration, analysts said.
Trump and technology executives have touted lofty plans by Oracle, SoftBank and others to invest heavily in artificial intelligence since his return to the White House earlier this year. On Wednesday, Trump slapped steep duties on leading technology equipment suppliers including 34% on China, 32% on Taiwan and 25% on South Korea, while imposing a 10% baseline tariff on all imports to the U.S. Electronics - which include smartphones, PCs and data-center equipment - were the second biggest imports last year at nearly $486 billion worth of goods, according to Census Bureau data. While semiconductors were exempted from Wednesday's tariffs, the U.S. is planning targeted tariffs for chips that could come later, a White House official said.
Ford Motor announced discounts across multiple models starting Thursday, leaning on its healthy inventory to offer customers thousands of dollars off as competitors hike prices to absorb tariff costs. Ford will offer employee pricing - a discounted rate available to its workers - to all customers, the company confirmed, after Reuters reported the news. The program is called the "From America for America" plan, and is available to U.S. shoppers. The Dearborn, Michigan-based automaker builds 80% of its U.S.-sold vehicles domestically, giving it a greater buffer from U.S. President Donald Trump's tariffs than some competitors. However, it still faces the prospect of steep levies on imported vehicle parts. The incentives apply to much of its lineup, including vehicles like the Mustang Mach-E and Maverick that are built in Mexico. Some vehicles, including its lucrative Super Duty trucks, are exempt. The promotion runs until June 2, Ford said.
General Motors is moving to increase production of light-duty trucks at its Fort Wayne, Indiana, assembly plant, it said in a webcast sent to plant employees and viewed by Reuters. GM's announcement came a day after President Donald Trump announced 25% tariffs on auto imports. The Fort Wayne plant makes the Chevrolet Silverado and GMC Sierra trucks, which GM also manufactures at plants in Mexico and Canada. The Detroit automaker may also add overtime days to the schedule, plant director Dennys Pimenta told employees in the webcast. GM said in a statement that it will hire temporary workers for the Fort Wayne assembly plant, saying that will be part of "operational adjustments" at the plant "to support current manufacturing and business needs." A company source said several hundred temporary workers will be hired to increase employment at the plant.
Stellantis said it was temporarily laying off 900 workers at five U.S. facilities and pausing production at one assembly plant each in Mexico and Canada, after US President Donald Trump's tariffs were announced. Trump broadened the tariffs to a 10% baseline on all imports on Wednesday, with higher rates for some countries. These levies followed 25% duties on all auto imports announced last week that sent shockwaves through the global auto industry. In a letter sent to employees, Antonio Filosa, Stellantis' chief operating officer for the Americas, said the company is "continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions." About 4,500 workers at Windsor will be impacted by the idling. Workers at Toluca will continue to report to work and get paid but will not make vehicles, according to the company.
