April 30, 2026 5:09PM 

# The AI Boom Is Being Fueled by Imports—and Free Trade 

By [Scott Lincicome](https://www.cato.org/people/scott-lincicome), [Alfredo Carrillo Obregon](https://www.cato.org/people/alfredo-carrillo-obregon), and [Chad Smitson](https://www.cato.org/people/chad-smitson) 

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Data published today by the [US Bureau of Economic Analysis](https://www.bea.gov/data/gdp/gross-domestic-product) 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:

![AI-related spending soared along with imports that power datacenters and related investments](/sites/cato.org/files/styles/pubs_2x/public/2026-04/lV5fI-ai-related-spending-soared-along-with-imports-that-power-datacenters-and-related-investments-%20%281%29.png?itok=5wVAdoqs) 

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](https://www.apricitas.io/p/the-tariff-exemption-behind-the-ai) these items from his global tariff regime:

![U.S. tariffs surged in 2025 - except for AI-related inputs](/sites/cato.org/files/styles/pubs_2x/public/2026-04/x6ihZ-u.s.-tariffs-surged-in-2025-except-for-ai-related-inputs-.png?itok=sd7D74fI) 

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.

##### Related Tags 

[IEEPA Tariffs](https://www.cato.org/ieepa), [Economics](https://www.cato.org/economics), [Trade Policy](https://www.cato.org/trade-policy) 

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