President Donald Trump has approved a new 25% tariff on select advanced computing chips, according to a White House fact sheet released on Wednesday. The measure applies to high-end processors such as Nvidia’s H200 and AMD’s MI325X, while chips imported to support the expansion of the US technology supply chain will be exempt.
However, the White House has not clarified the specific requirements companies must meet to qualify for these exemptions. A request for clarification from CNN was not immediately answered.
The fact sheet also cautioned that Trump “may impose broader tariffs on imports of semiconductors and their derivative products” in the near future, signaling that the current action could be expanded.
The tariff aligns with Trump’s broader strategy to strengthen domestic technology manufacturing and reinforce US leadership in artificial intelligence. Nvidia, whose chips play a critical role in powering AI-driven data centres, has been central to the AI surge and has drawn increased attention from the administration.
Trump cited national security concerns and invoked Section 232 of the Trade Expansion Act of 1962, which allows the president to impose tariffs on imports deemed a threat to national security.
Previously, Trump said Nvidia would be allowed to sell its H200 chip to China, but with the condition that the US would receive a 25% share of the transaction.
Reacting to the announcement, Nvidia said in a statement that it supports Trump’s “decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America.”
“Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” the company said.
AMD also confirmed compliance, stating that it adheres “with all U.S. export control laws and policies.”
This is not the first time Trump has floated tariff exemptions to encourage domestic investment. In August, he warned of potential 100% tariffs on semiconductor imports but said companies committed to US-based manufacturing would be spared.
Artificial intelligence has become a key pillar of Trump’s second term, with several executive orders signed to accelerate AI development and roll back regulations. However, industry leaders including Nvidia CEO Jensen Huang have previously criticised strict export controls on China, arguing that such measures may instead accelerate innovation abroad.
These tensions have placed major chipmakers like Nvidia and AMD at the centre of US-China trade disputes. In August, both companies disclosed they would pay 15% of certain chip sales in China to the US government, an arrangement believed to involve older-generation chips.
Trump first signalled plans for a 25% semiconductor tariff in February, with implementation initially expected by April. The process advanced months later when a formal investigation into chip imports was launched an essential step before applying Section 232 tariffs. These measures are separate from other tariffs currently under legal review before the US Supreme Court.
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