After months of speculation, the Trump administration has announced a new semiconductor tariff targeting a narrow set of advanced AI chips, including Nvidia’s H200 processors destined for China.
President Donald Trump signed a proclamation on Wednesday imposing a 25% tariff on advanced AI semiconductors that are manufactured outside the United States and pass through the U.S. before being exported to customers in other countries.
The move formalizes a key part of the U.S. Department of Commerce’s recent decision to allow Nvidia to resume shipments of its H200 advanced AI chips to vetted customers in China starting in December. The tariff also applies to certain chips from other companies, including AMD’s MI325X. Chips imported into the U.S. and used domestically for research, defense, or commercial purposes are exempt from the tariff.
Despite the added costs, Nvidia welcomed the decision, saying it enables U.S. chipmakers to remain competitive while supporting domestic jobs and manufacturing. The company has seen strong demand for the H200, reportedly considering ramping up production amid a surge of early orders from Chinese firms, though future sales will also depend on how China regulates such imports.
China is seeking to balance its ambition to grow a domestic semiconductor industry with the need to stay competitive in the global AI race. According to Nikkei Asia, Chinese authorities are drafting new guidelines that would allow domestic companies to purchase a limited number of foreign-made chips, potentially easing restrictions on imports like Nvidia’s.
The proclamation underscores Washington’s broader concern over supply-chain dependence, noting that the U.S. currently manufactures only about 10% of the chips it uses, a reliance the administration describes as a significant economic and national security risk.
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