Trump Imposes 25% Tariff on Advanced Computing Chip Imports

U.S. President Donald Trump has announced a new 25 percent tariff on the import of certain high-end computing and AI chips, such as Nvidia’s H200 AI processor and AMD’s MI325X semiconductor, citing national security concerns and the need to strengthen domestic semiconductor production.

Key Highlights

• US imposes 25% tariff on certain advanced computing and AI chip imports.
• Move aims to strengthen domestic semiconductor production and address national security concerns.

The tariff, which was imposed under a Section 232 investigation of the Trade Expansion Act of 1962, aims to reduce America’s reliance on foreign chip supply chains, particularly from countries like Taiwan, where much of the world’s advanced semiconductor manufacturing currently takes place. U.S. officials argue that the country produces only a small share of the chips it needs, which poses economic and strategic risks.

Under the White House proclamation, the 25 percent duty will not apply to chips imported for use in U.S. data centers, startups, consumer and civil industrial applications, or public sector projects, and exemptions may also be granted for imports that contribute to building the domestic technology supply chain.

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The move is part of a broader push to boost domestic semiconductor manufacturing and may be followed by wider tariffs on semiconductors and related products in the future. Analysts say the new levies could influence global chip markets and supply chains as the U.S. seeks to expand production capacity and strategic resilience.