Trump Imposes 25% Tariff on High-End AI Chips Under New National Security Order

U.S. President Donald Trump on Wednesday imposed a 25% import tariff on certain advanced AI chips, including Nvidia’s H200 AI processor and AMD’s MI325X, under a new national security proclamation issued by the White House. The move follows a nine-month Section 232 investigation under the Trade Expansion Act of 1962, targeting high-end semiconductors that meet specific performance benchmarks, as well as some devices that contain them.

The White House said the tariffs are designed to encourage more semiconductor production in the United States and reduce reliance on overseas supply chains—particularly those linked to Taiwan. In its proclamation, the administration noted the U.S. currently manufactures only around 10% of the chips it needs, calling the dependence a major economic and national security risk. However, the tariffs will be narrowly applied, with exemptions for chips and derivative devices imported for U.S. data centers, startups, non-data center consumer use, civil industrial applications, and public sector needs, while Commerce Secretary Howard Lutnick has authority to grant further exemptions.

Markets reacted cautiously, with shares of Nvidia, AMD and Qualcomm trading slightly lower in after-hours trading. The announcement also adds to Trump’s broader tariff strategy aimed at strengthening American manufacturing, following earlier import duty measures covering sectors such as pharmaceuticals and heavy-duty trucks. The administration has signaled that broader semiconductor tariffs could still come later, though the order clarifies that chip tariffs will not be stacked on top of other Section 232 duties such as those on metals, autos, and truck parts.

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