Foreign-made semiconductors are facing scrutiny and tariffs by the Trump administration, which would cause a ripple effect for manufacturing and price of most electronic goods, experts say. (Photo by Narumon Bowonkitwanchai/Getty Images)

The price of technology goods and services in the U.S. will likely rise in the next few months, experts say, as the White House continues to shift its strategy on tariffs for imported electronic hardware.

After initial reports that Chinese goods would receive as high as a 145% tariff, President Donald Trump said on April 13 that electronics like smartphones, computers and semiconductors — chips that process, power and transmit information — would be exempt. But Trump said later that day that imported semiconductors, and the electronics they’re embedded in, will likely be facing their own tariff structure in the coming weeks.

In tandem with Trump’s announcement, the U.S. Department of Commerce announced an official investigation into semiconductor imports, aiming to study the national security implications of importing manufacturing equipment and derivative products. The move is likely two-fold, tech experts say — Trump’s aim with foreign tariffs is to pressure American manufacturers to make more goods in U.S. facilities.

But his administration is also likely looking for cybersecurity risks that could be introduced through foreign manufacturing, like in compromised operating systems, embedded malicious code, or flawed designs, said Derek Lemke, senior vice president of product level intelligence at risk management firm Exiger.

“They power everything from advanced weapons systems and critical infrastructure to smartphones and laptops,” Lemke said. “Many of these components are manufactured abroad, often in regions with rising geopolitical tensions or limited transparency into supply chain practices.”

The U.S. is currently upping its manufacturing of semiconductors. It produced about 10% of the world’s semiconductors in 2022, and is projected to reach 14% by 2032 with the additional funding and infrastructure provided by the CHIPS and Science Act, passed during the Biden administration. But while many advanced chips are designed by American companies like Nvidia, Apple, Qualcomm and AMD, they are manufactured in Taiwan, which is currently negotiating tariff deals with the U.S.

Many electronics involve manufacturing processes from all over the world, making the tariff structure involved a complicated one. And while it’s a good idea for Americans to manufacture more of their semiconductors to diversify the global supply chain of chips, the country is nowhere near prepared to make as many as we need, said Nikolas Guggenberger, an assistant professor of law with a focus on antitrust, law and technology, privacy, and regulation at The University of Houston Law Center.

Guggenberger called semiconductor manufacturing “among the most complex industrial processes on Earth,” which would require years of planning, training and billions in investment for the U.S. to become a leader.

While the U.S. awaits more clarity over tariffs on electronic goods and the findings of the semiconductor probe, Guggenberger and Lemke say that American consumers should prepare themselves for higher prices on smartphones, laptops and other personal devices. Because semiconductors are used in so many everyday products, those price hikes could seep into wider spending, Guggenberger said.

“From a computer to everyday devices, like a garage opener, or a toaster,” he said. “It’s everything, it’s absolutely everything.”

Guggenberger said there’s a possibility that very high tariffs could also lead to a pause or slowdown in manufacturing in general, meaning consumers may see emptier shelves or a backlog on products in a few months.

Those on the software side of the tech industry will feel the effects, too, Lemke said. Software companies, AI developers and cybersecurity experts all rely on computing power from chip hardware, and disruption in the supply chain could slow innovation in these businesses, he said.

Even just the discussion of tariffs is having a ripple effect through the tech sector, Lemke said. Companies are having to evaluate their supply chains, their sourcing and maybe stockpile some components to their products.

“The uncertainty alone is enough to influence pricing, procurement strategies and investment decisions across the tech ecosystem,” Lemke said. 

As a major contributor to global carbon dioxide (CO₂) emissions, the transportation sector has immense potential to advance decarbonization. However, a zero-emissions global supply chain requires re-imagining reliance on a heavy-duty trucking industry that emits 810,000 tons of CO₂, or 6 percent of the United States’ greenhouse gas emissions, and consumes 29 billion gallons of diesel annually in the U.S. alone.

A new study by MIT researchers, presented at the recent American Society of Mechanical Engineers 2024 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, quantifies the impact of a zero-emission truck’s design range on its energy storage requirements and operational revenue. The multivariable model outlined in the paper allows fleet owners and operators to better understand the design choices that impact the economic feasibility of battery-electric and hydrogen fuel cell heavy-duty trucks for commercial application, equipping stakeholders to make informed fleet transition decisions.

“The whole issue [of decarbonizing trucking] is like a very big, messy pie. One of the things we can do, from an academic standpoint, is quantify some of those pieces of pie with modeling, based on information and experience we’ve learned from industry stakeholders,” says ZhiYi Liang, PhD student on the renewable hydrogen team at the MIT K. Lisa Yang Global Engineering and Research Center (GEAR) and lead author of the study. Co-authored by Bryony DuPont, visiting scholar at GEAR, and Amos Winter, the Germeshausen Professor in the MIT Department of Mechanical Engineering, the paper elucidates operational and socioeconomic factors that need to be considered in efforts to decarbonize heavy-duty vehicles (HDVs).

Operational and infrastructure challenges

The team’s model shows that a technical challenge lies in the amount of energy that needs to be stored on the truck to meet the range and towing performance needs of commercial trucking applications. Due to the high energy density and low cost of diesel, existing diesel drivetrains remain more competitive than alternative lithium battery-electric vehicle (Li-BEV) and hydrogen fuel-cell-electric vehicle (H2 FCEV) drivetrains. Although Li-BEV drivetrains have the highest energy efficiency of all three, they are limited to short-to-medium range routes (under 500 miles) with low freight capacity, due to the weight and volume of the onboard energy storage needed. In addition, the authors note that existing electric grid infrastructure will need significant upgrades to support large-scale deployment of Li-BEV HDVs.

While the hydrogen-powered drivetrain has a significant weight advantage that enables higher cargo capacity and routes over 750 miles, the current state of hydrogen fuel networks limits economic viability, especially once operational cost and projected revenue are taken into account. Deployment will most likely require government intervention in the form of incentives and subsidies to reduce the price of hydrogen by more than half, as well as continued investment by corporations to ensure a stable supply. Also, as H2-FCEVs are still a relatively new technology, the ongoing design of conformal onboard hydrogen storage systems — one of which is the subject of Liang’s PhD — is crucial to successful adoption into the HDV market.

The current efficiency of diesel systems is a result of technological developments and manufacturing processes established over many decades, a precedent that suggests similar strides can be made with alternative drivetrains. However, interactions with fleet owners, automotive manufacturers, and refueling network providers reveal another major hurdle in the way that each “slice of the pie” is interrelated — issues must be addressed simultaneously because of how they affect each other, from renewable fuel infrastructure to technological readiness and capital cost of new fleets, among other considerations. And first steps into an uncertain future, where no one sector is fully in control of potential outcomes, is inherently risky. 

“Besides infrastructure limitations, we only have prototypes [of alternative HDVs] for fleet operator use, so the cost of procuring them is high, which means there isn’t demand for automakers to build manufacturing lines up to a scale that would make them economical to produce,” says Liang, describing just one step of a vicious cycle that is difficult to disrupt, especially for industry stakeholders trying to be competitive in a free market. 

Quantifying a path to feasibility

“Folks in the industry know that some kind of energy transition needs to happen, but they may not necessarily know for certain what the most viable path forward is,” says Liang. Although there is no singular avenue to zero emissions, the new model provides a way to further quantify and assess at least one slice of pie to aid decision-making.

Other MIT-led efforts aimed at helping industry stakeholders navigate decarbonization include an interactive mapping tool developed by Danika MacDonell, Impact Fellow at the MIT Climate and Sustainability Consortium (MCSC); alongside Florian Allroggen, executive director of MITs Zero Impact Aviation Alliance; and undergraduate researchers Micah Borrero, Helena De Figueiredo Valente, and Brooke Bao. The MCSC’s Geospatial Decision Support Tool supports strategic decision-making for fleet operators by allowing them to visualize regional freight flow densities, costs, emissions, planned and available infrastructure, and relevant regulations and incentives by region.

While current limitations reveal the need for joint problem-solving across sectors, the authors believe that stakeholders are motivated and ready to tackle climate problems together. Once-competing businesses already appear to be embracing a culture shift toward collaboration, with the recent agreement between General Motors and Hyundai to explore “future collaboration across key strategic areas,” including clean energy. 

Liang believes that transitioning the transportation sector to zero emissions is just one part of an “energy revolution” that will require all sectors to work together, because “everything is connected. In order for the whole thing to make sense, we need to consider ourselves part of that pie, and the entire system needs to change,” says Liang. “You can’t make a revolution succeed by yourself.” 

The authors acknowledge the MIT Climate and Sustainability Consortium for connecting them with industry members in the HDV ecosystem; and the MIT K. Lisa Yang Global Engineering and Research Center and MIT Morningside Academy for Design for financial support.