NEW YORK — There are two kinds of industries in America: the ones that pay tariffs, and the ones that build the future. This week, the White House made crystal clear which one it favors — by expanding its “ratepayer protection pledge” to include state governors and utility companies, ensuring that the nation’s artificial intelligence buildout proceeds at full speed while regular Americans keep their lights on.

The pledge, originally signed by Google, Microsoft, Meta, Oracle, xAI, OpenAI, and Amazon, is the latest in a series of executive actions designed to make America the undisputed global leader in AI — a goal that requires, among other things, the single largest tariff exemption in the modern era: roughly $34 billion a month in imported computers and parts, on which the AI boom is now completely reliant.

"The exemption is not a loophole. It is a runway," said AI infrastructure analyst Preston Malloy. "You don't charge a plane for the runway while it is taking off. You charge it after it lands, and then, if it is American, you give it a discount. This is not economics. This is patriotism with a spreadsheet."

Critics — and there are always critics — have noted two things. First, that the tariff exemption means the biggest, richest companies in the world are not paying the tariffs that smaller companies are paying. Second, that the ratepayer protection pledge, for all its fine language, is not legally enforceable; it is, in the words of its detractors, “just a promise.”

To which the administration’s response is simple and, frankly, devastating: a pledge is a pledge. In America, a handshake used to be a contract. We have become a nation of cynics who demand clauses, enforcement mechanisms, and statutory penalties when what we should be demanding is a little faith in one another, and in our utility companies, which have never once let us down, unless you count the bills, which you shouldn’t, because those are legal.

The White House has framed the pledge as proof that America can lead the world in AI without punishing the common American with excessive electricity costs — a promise so bold that even the governors and utility executives who just signed it reportedly paused to marvel at it, before returning to their rate-setting schedules.

THE RATEPAYER PROTECTION PLEDGE: WHAT IT ACTUALLY SAYS

  • Preamble: "In the spirit of American innovation and affordable electricity..." — the spirit is doing a lot of work here.
  • Clause 1: "The parties shall endeavor to protect ratepayers." Shall endeavor. Two words the lawyers remember fondly.
  • Clause 2: "Consistent with best efforts." Best efforts, as opposed to, presumably, mediocre efforts.
  • Clause 3: "In a manner reasonably calculated to..." — calculated, not guaranteed. Math is hard.
  • Clause 4: "Subject to applicable law." There is, reportedly, no applicable law.
  • Signature block: Signed by seven of the largest companies on Earth, who have pledged, and that is enough.

Economists have noted that the combination — tariff-free computers, unenforceable electricity promises — is, in effect, a massive subsidy for the tech industry paid for by everyone who will one day buy something with a chip in it. To which supporters respond: have you seen what a chip can do? Have you seen what a data center can do? Have you seen what America can do when it stops taxing the future and starts believing in it, one pledge at a time?

At press time, one utility company had reportedly pledged to protect its ratepayers, and the ratepayers had reportedly pledged to believe it, and both parties had reportedly agreed to revisit the matter after the next rate hike, which is scheduled for the third quarter, pending approval, which is pending a pledge.