Trump Targets AI Chips with Tariffs to Boost US Capability
US President Donald Trump has announced a new move aimed at strengthening America’s domestic capacity in the artificial intelligence (AI) sector. Under a national security order issued by the White House, a 25 percent tariff has been imposed on imports of certain high-performance AI chips, including Nvidia’s H200 and AMD’s MI325X. The announcement was made on Wednesday, according to Reuters.
The White House said the decision followed a nine-month investigation conducted under Section 232 of the Trade Expansion Act of 1962. The objective is to increase investment in US-based semiconductor manufacturing and reduce reliance on foreign production hubs, particularly Taiwan. At present, the United States produces only about 10 percent of the chips it consumes, a situation described as a risk to both economic and national security.
However, the scope of the tariffs has been kept limited. Chips used in US data centres, startups, consumer-level products, industrial facilities, and government sectors will remain exempt from the new duty. The Commerce Secretary will also retain the authority to grant additional exemptions if necessary.
Following the announcement, shares of Nvidia, AMD, and Qualcomm saw a slight decline. Analysts noted that, for now, the Trump administration appears to be maintaining a relatively restrained approach to chip import restrictions.
DBTech/BMT/OR
