The AI Shield: Trump Administration Plans Tech Carve-Out from New Chip Tariffs

In a high-stakes move to balance protectionist trade goals with the explosive needs of the artificial intelligence sector, the Trump administration is reportedly crafting a sophisticated “carve-out” strategy for US tech giants. According to reports from the Financial Times on February 10, 2026, the US Department of Commerce is drafting a framework to exempt Amazon, Google, and Microsoft from the next wave of semiconductor tariffs.

This move follows the January 15 implementation of a 25% tariff on high-performance chips like Nvidia’s H200 and AMD’s MI325X, signaling that Washington is wary of slowing down domestic AI progress.

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Tariffs with a Twist: Protecting the AI Race

The administration’s logic is clear: while tariffs are intended to force manufacturing back to the US, the immediate demand for AI compute capacity is too strategic to compromise.

• Hyperscaler Relief: The proposed carve-outs are designed specifically for chips used in AI data centers, research and development, and domestic technology supply chains.

• Economic Security: By shielding the “Big Three” hyperscalers, the White House aims to ensure that the US remains the global leader in Generative AI despite rising trade barriers.

The TSMC Connection: Exemptions as an Investment Incentive

The cornerstone of this plan is Taiwan Semiconductor Manufacturing Company (TSMC). The world’s largest contract chipmaker is currently the lynchpin of the AI world, and its $165 billion Arizona Megafab project is the leverage Washington is using.

“The framework is intended to push TSMC to shift more production to the US by allowing the company to ‘earn’ exemptions it can then allocate to its American customers,” an administration official noted.

Under a broader US-Taiwan Trade Agreement signed in January 2026, the US has agreed to cap reciprocal tariffs on Taiwanese goods at 15% in exchange for a total of $250 billion in domestic chip and energy investments from Taiwanese firms.

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Decoding the “Rebate” System: How It Works

The Commerce Department’s outline reveals a “multiplier” system that rewards companies for building on American soil:

1. The 2.5x Construction Bonus: For every unit of capacity a company plans for a new US plant, they can import 2.5 times that amount tariff-free during the construction period.

2. The 1.5x Operational Bonus: Companies with existing US facilities (like TSMC’s Fab 1 in Phoenix) can import 1.5 times their current US capacity without paying Section 232 duties.

3. Selective Enforcement: Currently, the 25% tariffs primarily target chips that are re-exported to China, while those destined for domestic AI infrastructure remain the primary candidates for these new “rebates.”

[Infographic Concept: A visual comparison showing the “Tariff Free” import multipliers for companies building US fabs vs. those relying solely on imports]

Strategic Friction: Taiwan’s “Impossible” 40% Target

While the exemptions offer a carrot, the administration is still carrying a heavy stick. US Commerce Secretary Howard Lutnick has warned that failure to shift 40% of Taiwan’s chip supply chain to US soil could trigger even higher “punitive” tariffs.

However, the response from Taipei has been one of cautious resistance. Vice Premier Cheng Li-chiun recently stated that relocating 40% of the ecosystem is “impossible,” describing Taiwan’s semiconductor industry as an “iceberg” with a foundation built over decades that cannot simply be moved.

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[SUMMARY OF US-TAIWAN CHIP TRADE FRAMEWORK – FEB 2026]

Next Steps

While the plan has been drafted by the Commerce Department, it is currently “in flux” and awaiting a final signature from President Trump. You should watch for an official White House Proclamation before the India–AI Impact Summit 2026 begins on February 16, as the administration likely wants to cement this “pro-AI” stance before global delegates. Furthermore, if you are a tech investor, monitor TSMC’s monthly sales reports for any shifts in customer allocations that suggest Big Tech is already pricing in these exemptions.

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