Trump’s New 25% Tariff on Advanced AI Semiconductors: What You Need to Know
President Trump has signed a proclamation imposing a 25 percent tariff on advanced artificial intelligence chips, marking a significant shift in the administration’s semiconductor strategy. The policy specifically targets high-performance processors like NVIDIA’s H200 and AMD’s MI325X, along with other unspecified advanced computing chips.
The Policy’s Scope and Exemptions
The tariff applies specifically to advanced semiconductors imported for re-export to other countries rather than domestic use. This means chips destined for foreign data centers, research institutions, and commercial operations will face the 25 percent duties.
However, the White House carved out significant exemptions for domestic applications. The tariff will not apply to chips imported for US data centers, startups, consumer applications, civil industrial applications, or public sector use. Semiconductors supporting the buildout of America’s domestic technology supply chain and manufacturing capacity are also exempt.
A Policy Contradiction with China
The announcement creates an immediate complication: just one day before the tariff was imposed, the administration approved exports of the H200 to China, a major reversal from previous national security restrictions. However, all H200 chips destined for China must transit through the United States from Taiwan for mandatory third-party laboratory testing, effectively triggering the new tariff when they enter US territory—before ultimately being exported.
Broader Strategic Goals
The tariff reflects the administration’s push to boost domestic semiconductor manufacturing at a time when the United States produces only approximately 10 percent of the semiconductors it consumes. The move also prevents companies from designing cut-down versions of advanced chips to circumvent export restrictions, a practice previously used for models like the NVIDIA B40 and AMD MI308.
The White House indicated that additional broader tariffs on semiconductor imports and derivative products may follow in the near future, potentially strengthening incentives for onshore production.
What’s Next
Commerce Secretary Howard Lutnick retains broad discretion to grant additional exemptions on a case-by-case basis. Within 90 days, the administration will reassess whether the tariff should increase or expand further.