The AI Boom Is Being Fueled by Imports—and Free Trade
Scott Lincicome, Alfredo Carrillo Obregon, and Chad Smitson
Data published today by the US Bureau of Economic Analysis show that domestic investment in artificial intelligence is currently acting as a massive tailwind for US economic growth (gross domestic product). The data also show that this American investment boom is being fueled by imports of the servers and other things that datacenters and related AI technologies need:
Separate data show, moreover, that imports of these AI-related inputs are entering the country almost entirely free of tariffs, thanks in large part to a mid-2025 decision by President Trump to exempt these items from his global tariff regime:
Surely, the AI boom isn’t solely due to free trade, and we wouldn’t expect it to cause every other US industry to boom like AI is today. But one still must wonder how many other American industries might similarly benefit from the same “special” treatment that the AI industry enjoys today—i.e., the treatment almost every industry received before the Trump tariff wall was erected last year.
Source: https://www.cato.org/blog/ai-boom-being-fueled-imports-free-trade
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