Trump Administration Sets 25% Tariff on High-Performance Chips

Specific Products Targeted by the Tariff

In a recent move by President Trump, a new tariff of 25% has been imposed on some advanced computing chips, as declared by the White House. Previously, the administration hinted at much larger and comprehensive tariffs on these items. Trump had even expressed intent to introduce a 100% tariff on companies unless they enhance their semiconductor manufacturing operations in the USA.

Impact on Imported and Re-exported Chips

This tariff will impact only those advanced chips that are brought into the United States with the purpose of being sold to other countries. Among those specified by the White House are AMD's MI325X and NVIDIA's H200 as particularly affected. Trump indicated approval for the H200's export to China though, underscoring that this chip isn't NVIDIA's leading AI product and noting that the company now offers even more advanced solutions like the Blackwell series. 'We'll essentially earn a 25% profit on those chip sales,' Trump remarked.

Exemptions and Potential Future Expansion

Chips imported into the U.S. that are set to be used within American-sold products or local data centers will escape this new tariff. The White House clarified that tariffs do not apply to chips that bolster the U.S. technology supply chain and domestic production capacity for semiconductor derivatives. However, it's possible the administration may extend tariffs more widely on semiconductor imports and associated products soon.