US President Donald Trump has formally imposed a 25% tariff on certain AI chips as part of a broader strategy to boost domestic manufacturing and generate revenue. The tariffs target processors like Nvidia’s H200 and AMD’s similar semiconductor MI325X, in line with a national security order announced by the White House.
The move is part of a comprehensive strategy to create incentives for chipmakers to produce more semiconductors in the United States.
“The United States currently fully manufactures only about 10 percent of the chips it needs and is heavily dependent on foreign supply chains,” the statement said.
The White House further clarified in its fact sheet that the tariffs would be narrowly targeted. These do not apply to chips and derivative products imported for use in U.S. data centers, consumer applications, or public sector applications.
Meanwhile, concerns are swirling about which products, including chips, are subject to tariffs, the specific tax rates, and whether any countries or companies are exempt.
The Trump administration this week required that chips destined for China be manufactured by bypassing Taiwan, routed through the United States, and tested at third-party labs. Wednesday’s announcement suggests the chips will be subject to a 25% tariff if imported into the United States.
President Trump imposes 25% tariff on AI chips as part of supply chain overhaul
President Trump has imposed a series of tariffs in a significant move to shore up U.S. manufacturing. In a pivotal announcement of significant new tariffs, he included 100% tariffs on branded medicines, while creating new trade uncertainty after a period of relative calm.
In April 2025, the Trump administration launched an investigation into pharmaceuticals and semiconductors as a precursor to imposing tariffs, arguing that over-reliance on overseas production poses a national security threat.
In the near future, President Trump is expected to potentially impose broad tariffs on imports of semiconductors and derivative products to encourage domestic manufacturing, in line with a White House fact sheet.
Additionally, the supplement further clarifies that the 25% tariff imposed on semiconductors under this order will not be stacked on top of other tariffs by the Trump administration under existing Section 232 orders.
Recent changes mark a major shift in U.S. technology policy, moving from an absolute ban on advanced AI hardware to pay-to-play revenue models.
