Washington, D.C. — TechNet, the national, bipartisan network of tech CEOs and senior executives, today led a coalition of advocacy groups that collectively represent hundreds of tech companies in urging President Donald Trump to avoid imposing tariffs on the technology inputs essential for America’s national security and continued leadership in artificial intelligence (AI). In a letter to the President, the groups warned that broad-based Section 232 tariffs on semiconductors, robotics components, and other inputs would raise costs for companies that are working as quickly as possible to build the infrastructure required to develop emerging technologies like AI, and in turn slow U.S. economic growth. As an alternative to cost-raising tariffs, the coalition proposed pursuing policies that directly boost American production of technology hardware, accelerate the approval of energy infrastructure projects, strengthen domestic processing of critical minerals, and encourage continued investment from trusted allies and partners, among others.
Joining TechNet on this letter are the Computer & Communications Industry Association (CCIA), Consumer Technology Association (CTA), Information Technology Industry Council (ITI), and Software Industry Information Association (SIIA).
“The U.S. tech industry is laser-focused on ensuring America leads the world in the technologies that will define our future. Broadly imposing tariffs on semiconductors, robotics, and other hardware would make ongoing development efforts more costly and lead to delay, undercutting our competitive edge. We believe there is a more effective path to strengthen our supply chains and reward companies that invest and build in America, without raising costs or jeopardizing our technological progress,” said Linda Moore, TechNet President and CEO.
“Given the unprecedented domestic demand for products covered by these 232s, including the historical investment in AI and factory automation, tariffs at this point will be counterproductive. It will take years to meet that demand through onshored production, and in the interim, a tariff only cripples investment, handicaps export competitiveness, and raises costs for producers and consumers alike,” said Jonathan McHale, Vice President, Digital Trade at CCIA.
“The technology industry is making significant investments in the United States to build the infrastructure, hardware, and services that power growth in the U.S. economy,” said ITI President and CEO Jason Oxman. “As the Administration considers outcomes from the Section 232 investigations, it should pursue policies that strengthen investment, innovation, and resilient supply chains while reinforcing U.S. leadership in the technologies underpinning America’s AI future.”
“Winning the global AI race requires ensuring American innovators have immediate access to the critical supply chains and components needed to build and scale here at home. While we strongly support expanding domestic semiconductor and robotics capacity, building that infrastructure takes time, and premature trade restrictions risk slowing down the very industries driving our technological edge. We urge the administration to adopt targeted, evidence-based measures that protect national security without compromising America’s ability to lead the world in AI,” said Chris Mohr, President, SIIA.
“Semiconductors power everything from smartphones and laptops to connected cars and servers. Amid historic investment in U.S. semiconductor manufacturing capacity, broad tariffs on semiconductors and downstream products would only slow deployment of next-generation digital infrastructure and hurt American innovators launching new technology products. Our trade policies must support continued U.S. leadership in artificial intelligence and other frontier technologies and strengthen relationships with trusted trading partners and allies,” said Kinsey Fabrizio, President and CEO, CTA.
The letter also underscores the negative impact that tariffs on critical technology inputs would have on U.S. economic growth. It cites an Information Technology and Innovation Foundation (ITIF) analysis finding that a blanket 25 percent tariff on semiconductor imports would reduce U.S. GDP by approximately $58 billion in the first year alone. Using a different modeling approach, the Computer & Communications Industry Association (CCIA) concluded that this policy would cost the U.S. an estimated $90 billion per year in capital expenditures and GDP between 2026 and 2030.
Read the full comment letter here.