UNITED STATES: U.S. President Donald Trump has officially imposed a 25% tariff on imports of certain advanced artificial intelligence chips, marking a major shift in US technology policy and trade strategy. The move, announced through a new presidential proclamation, is aimed at boosting domestic semiconductor manufacturing, strengthening national security, and reducing reliance on foreign supply chains.
According to the White House, the new AI chip tariff targets high-performance computing processors such as Nvidia’s H200 and a comparable semiconductor from AMD, the MI325X. These advanced AI chips are widely used in data processing, machine learning, and artificial intelligence infrastructure. The decision aligns with the Trump administration’s broader push to revive American manufacturing and generate additional government revenue.
The proclamation highlighted that the United States currently manufactures only about 10 percent of the semiconductors it consumes, making the country heavily dependent on overseas production. The administration argues that this dependence poses risks to national security, especially as AI technology becomes increasingly central to defense, economic competitiveness, and critical infrastructure.
In a fact sheet, the White House clarified that the 25% tariff will be narrowly focused. The tariffs will not apply to AI chips and derivative products imported for US data centers, consumer electronics, or public sector applications. However, uncertainty remains regarding products that contain tariff-affected chips, possible exemptions, and how enforcement will be implemented.
Adding to the complexity, the Trump administration recently mandated that China-bound AI chips manufactured in Taiwan must pass through the United States for testing at third-party laboratories. Once these chips enter the US, they become subject to the new 25% import tariff, raising concerns among chipmakers and global supply chain stakeholders.
The AI chip tariffs are part of a wider trade policy shift. Trump has also announced sweeping tariffs on other sectors, including 100% duties on branded pharmaceutical drugs. In April 2025, the administration launched investigations into pharmaceuticals and semiconductors under national security provisions, paving the way for further trade restrictions.
Officials have indicated that broader tariffs on semiconductors and related products could follow. However, the White House confirmed that the new AI chip tariff will not stack on top of existing Section 232 tariffs. Analysts view this development as a significant transformation in US AI policy, moving from outright restrictions to a pay-to-play model for advanced artificial intelligence hardware.
