THE FUTURE OF AI
US President Donald Trump’ s return to the White House has unleashed a wave of trade policies that are rewiring how AI companies develop, manufacture and deploy their technologies across the globe.
First, the President announced 100 % tariffs on semiconductor imports while simultaneously crafting revenue-sharing deals with America’ s biggest chip manufacturers.
This is not the more gentle nudge of subsidies that characterised the Biden administration’ s CHIPS Act – it is designed to force a complete restructuring of global AI supply chains.
At the heart of this change lies a simple but brutal choice: move your manufacturing to American soil or face import costs.
For an industry that has thrived on globalised production networks, particularly the intricate relationship between American chip designers and Asian manufacturers, the implications are difficult to accept or challenge.
Craig Barrett, former CEO of Intel Corporation, captures the stakes when describing semiconductors as“ the steel of the modern age”.
These tiny processors power everything from smartphone assistants to the massive training runs that create models like ChatGPT.
“ The good news for companies like Apple is if you’ re building in the US or have committed to build, without question, committed to build in the US, there will be no charge”
Donlad Trump, US President
Today, the US’ s mantra seems to be: control their production and you control the future of AI – but what does this mean for the rest of the world’ s AI innovation?
How Apple secures safe passage in the US The first major victory for President Trump’ s approach came from an unexpected source.
Apple, a company that has built its fortune on Asian manufacturing, announced a US $ 600bn commitment to US production.
CEO Tim Cook’ s willingness to stand alongside Trump in the Oval Office while making this pledge speaks to how seriously the technology industry is taking these threats.
84 October 2025