Skip to content
Search

Latest Stories

Top Stories

Warning: Trump’s Tariffs Pose Obstacles for AI Development

Warning: Trump’s Tariffs Pose Obstacles for AI Development

Humans are using laptops and computers to interact with AI, helping them create, code, train AI, or analyze big data with fast, cutting-edge technology.

Getty Images/Wanan Yossingkum

Huiyan Li

WASHINGTON – During a House Energy and Commerce Committee hearing on April 9, Democratic representatives repeatedly raised concerns that President Trump’s new tariffs and attempts to repeal the Inflation Reduction Act would harm U.S. competitiveness in artificial intelligence (AI).


“Republicans constantly talk about winning the AI race, but the actions they’re taking may appear as if they're purposely trying to lose that race,” said Rep. Frank Pallone Jr. (D-N.J.).

The U.S. remains at the forefront of foundational AI research, largely driven by its innovative tech industry and ability to draw top talent from around the world. However, experts cautioned that this lead is fragile and the gap is closing.

The January release of the Chinese AI startup DeepSeek’s R1 Model challenged the U.S.'s long-standing dominance in AI development, as the model rivals the most recent American reasoning models at only a fraction of the cost.

Eric Schmidt, former Google CEO and chair of the Special Competitive Studies Project, stated that outcompeting China is not only an economic goal, but also a strategic imperative for America to “preserve American economic dynamism, military superiority, and global influence.”

Pallone, the ranking member of the committee, stated that Trump’s tariffs would increase the cost of materials the U.S. needs for the AI competition, such as steel and aluminum.

Starting last month, the Trump administration imposed a 25% tariff on imports of steel and aluminum products from all countries, restoring Section 232 of the US Trade Expansion Act of 1962.

Higher material costs could drive up expenses for building data centers and the transmission infrastructure that supplies electricity to them. The experts said these facilities are essential, and more should be built to advance AI.

Tariffs are already affecting AI-related industries. U.S. memory chipmaker Micron Technology announced on Tuesday that it would raise prices on some products starting Thursday due to President Trump’s new tariffs.

Manish Bhatia, executive vice president of global operations at Micron, was also on the witness panel. When Rep. Diana DeGette (D-Colo.) asked him about the price increases, he responded vaguely, saying, “Tariffs are an evolving situation.”

David Turk, a former deputy secretary of the Department of Energy under the Biden administration, stated that the tariffs imposed by President Trump introduced an immense amount of uncertainty that could deter near-term investment in powering AI.

“Folks who are planning data centers want certainty. They want stability of policy so they can plan on the floor. Tariffs are absolutely the worst if you want to bring on additional data and additional energy for data centers,” said Turk.


Turk added that Trump’s pledge to repeal the Inflation Reduction Act, which provides tax incentives, grants, and loans for clean energy, could discourage energy investment and drive costs even higher.

“We also need to be honest with ourselves right now. The quickest power, the most affordable power to bring onto our grids, including for data centers, is renewables and storage,” said Turk.

In 2025, the U.S. Energy Information Administration projected that 93% of new electricity capacity additions would come from renewable sources (solar and wind) and energy storage.

As the U.S. prioritizes meeting the surging energy demand driven by AI, Turk said it was the wrong time to make it more expensive to bring new electricity online, urging Congress to retain these important tax grants and loan tools.

Some Republicans disagreed.

“We are not going to do it with renewables because we just don’t have the time to build all you have to build out, including the transmission lines,” Rep. Gary Palmer (R-Ala.) said.

Palmer noted that a significant number of power generation facilities in the U.S. were shuttered and dismantled; however, the transmission lines from those facilities still remain. He suggested that the quickest way to meet energy demand would be to deploy small modular reactors that can be plugged into the existing transmission infrastructure.

Schmidt, former CEO of Google, agreed that small modular reactors could be a good solution. However, he stressed that none exist yet in America, and under the current regulatory structure, it could take 12 years to get one approved.

“We need a new program around much faster permitting for safer and safer fission and fusion nuclear SMRs as the correct path,” said Schmidt.

Huiyan Li is a reporter for Medill News Service covering business & technology. She is a journalism graduate student at Northwestern University specializing in politics, policy, and foreign affairs.

Read More

Just the Facts: Digital Services Tax
people sitting down near table with assorted laptop computers
Photo by Marvin Meyer on Unsplash

Just the Facts: Digital Services Tax

President Donald Trump said on Friday that he has ended trade talks with Canada and will soon announce a new tariff rate for that country, as stated in a Truth Social post.

The decision to end the months-long negotiations came after Canada announced a digital service tax (DST) that Trump called “a direct and blatant attack on our Country.”

Keep ReadingShow less
Entertainment Can Improve How Democrats and Republicans See Each Other

Since the development of American mass media culture in the mid-20th century, numerous examples of entertainment media have tried to improve attitudes towards those who have traditionally held little power.

Getty Images, skynesher

Entertainment Can Improve How Democrats and Republicans See Each Other

Entertainment has been used for decades to improve attitudes toward other groups, both in the U.S. and abroad. One can think of movies like Guess Who's Coming to Dinner, helping change attitudes toward Black Americans, or TV shows like Rosanne, helping humanize the White working class. Efforts internationally show that media can sometimes improve attitudes toward two groups concurrently.

Substantial research shows that Americans now hold overly negative views of those across the political spectrum. Let's now learn from decades of experience using entertainment to improve attitudes of those in other groups—but also from counter-examples that have reinforced stereotypes and whose techniques should generally be avoided—in order to improve attitudes toward fellow Americans across politics. This entertainment can allow Americans across the political spectrum to have more accurate views of each other while realizing that successful cross-ideological friendships and collaborations are possible.

Keep ReadingShow less
Congress Must Not Undermine State Efforts To Regulate AI Harms to Children
Congress Must Not Undermine State Efforts To Regulate AI Harms to Children
Getty Images, Dmytro Betsenko

Congress Must Not Undermine State Efforts To Regulate AI Harms to Children

A cornerstone of conservative philosophy is that policy decisions should generally be left to the states. Apparently, this does not apply when the topic is artificial intelligence (AI).

In the name of promoting innovation, and at the urging of the tech industry, Congress quietly included in a 1,000-page bill a single sentence that has the power to undermine efforts to protect against the dangers of unfettered AI development. The sentence imposes a ten-year ban on state regulation of AI, including prohibiting the enforcement of laws already on the books. This brazen approach crossed the line even for conservative U.S. Representative Marjorie Taylor Greene, who remarked, “We have no idea what AI will be capable of in the next 10 years, and giving it free rein and tying states' hands is potentially dangerous.” She’s right. And it is especially dangerous for children.

Keep ReadingShow less
Microphones, podcast set up, podcast studio.

Many people inside and outside of the podcasting world are working to use the medium as a way to promote democracy and civic engagement.

Getty Images, Sergey Mironov

Ben Rhodes on How Podcasts Can Strengthen Democracy

After the 2024 election was deemed the “podcast election,” many people inside and outside of the podcasting world were left wondering how to capitalize on the medium as a way to promote democracy and civic engagement to audiences who are either burned out by or distrustful of traditional or mainstream news sources.

The Democracy Group podcast network has been working through this question since its founding in 2020—long before presidential candidates appeared on some of the most popular podcasts to appeal to specific demographics. Our members recently met in Washington, D.C., for our first convening to learn from each other and from high-profile podcasters like Jessica Tarlov, host of Raging Moderates, and Ben Rhodes, host of Pod Save the World.

Keep ReadingShow less