Trump places a 25% tariff on high-end computing chips, and said more duties may be coming for the semiconductor industry
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- Donald Trump imposes 25% tariff on advanced computing chips like Nvidia H200 and AMD MI325X.
- The tariff aims to boost US tech manufacturing while exempting chips to support domestic supply chain growth.
- Trump cited national security concerns and invoked Section 232 to enact the tariff.
New year, new tariffs.
On Wednesday, Donald Trump moved ahead with a new 25% tariff on imports of some high-end computing chips, narrowly targeting hardware central to the AI boom while carving out exemptions meant to encourage more tech manufacturing in the US.
According to a White House fact sheet, the tariff applies to "certain advanced computing chips," including Nvidia's H200 processor and AMD's MI325X. Chips brought into the country to support the buildout of the US technology supply chain would be excluded, though the administration has not detailed how companies would qualify for that exemption.
The proclamation also targets "imports of semiconductors, semiconductor manufacturing equipment, and their derivative products from any country."
The White House did not immediately respond to a request for clarification.
The administration also signaled the move could be a first step. The Trump administration may expand tariffs to a wider range of semiconductors and related products in the future, according to the White House fact sheet.
Trump cited national security concerns and invoked Section 232 of the Trade Expansion Act of 1962, per the White House fact sheet, which allows presidents to impose trade restrictions after determining imports pose a security risk.
The tariff aligns with Trump's broader agenda to reshore advanced manufacturing get stay ahead of the AI race. Nvidia, whose chips power the bulk of the data centers behind AI services, has been a focal point of that plan. Trump has previously said the company would be allowed to sell certain advanced chips to China, especially the H200, under the condition that the US government gets 25% of the proceeds.
AMD and Nvidia did not immediately respond to a request for comments.
The tariff is not Trump's first attempt to use exemptions as a form of leverage. Last year, he floated tariffs as high as 100% on chips and semiconductors, while suggesting companies investing in US production could avoid them.