US President Donald Trump has imposed a 25% tariff on certain artificial intelligence semiconductors, including Nvidia's H200 processor and AMD's MI325X, under a national security order. The move follows a nine-month investigation under Section 232 of the Trade Expansion Act of 1962 and targets high-end chips meeting specific performance benchmarks.
The White House stated that the US currently manufactures only about 10% of the chips it requires, creating a heavy reliance on foreign supply chains, particularly in Taiwan. The tariffs aim to incentivise domestic chip production and reduce this dependency, which is deemed a significant economic and national security risk.
However, the tariffs are narrowly focused and include broad exemptions. Chips imported for US datacentres, startups, non-datacentre consumer applications, and public sector uses are not subject to the duties. Commerce Secretary Howard Lutnick has discretion to grant further exemptions.
Shares of Nvidia, AMD, and Qualcomm edged lower in after-hours trading. Nvidia declined to comment, while AMD stated it complies with all US export control laws. The Semiconductor Industry Association could not be reached for comment.
The tariffs come alongside a requirement for China-bound chips to be routed through the US for testing, making them subject to the 25% duty. Trump had previously delayed tariffs on Chinese semiconductor imports until June 2027, following a Section 301 investigation into China's legacy chip exports.
