Widening US trade deficit exposes clear limits of tariff strategy as AI boom underscores need for global cooperation, not confrontation: expert

The US trade deficit widened sharply in July to its highest level in 16 months, driven in part by surging imports of computers, computer accessories and semiconductors amid the country's AI investment boom, foreign media reported. The US is seeking to reduce its reliance on foreign manufacturing at a time when the AI industry increasingly relies on global supply chains and cross-border collaboration to meet rapidly growing demand for computing infrastructure, Chinese experts said. The latest US trade figures also raise questions over Washington's push for broader semiconductor-related tariffs, the experts said, noting that when domestic production cannot provide sufficient substitutes for imported products, additional tariffs may do little to curb demand and instead raise costs for US technology companies and consumers.

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