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Trump Implements 25 Percent Tariff on Advanced Semiconductors

(MENAFN) US President Donald Trump signed an executive order late Wednesday, enforcing a 25% tariff on certain sophisticated semiconductors, including Nvidia’s H200 chip and AMD’s MI325X, citing national security concerns.

In an official fact sheet, the White House indicated that Trump issued a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to tackle risks linked to imports of semiconductors, semiconductor manufacturing equipment, and related products.

The document highlighted that the tariff will target specific advanced chips such as Nvidia’s H200 and AMD’s MI325X, but it will not encompass chips imported to support the growth of the US domestic technology supply chain.

The White House further mentioned that Trump could extend broader tariffs on semiconductor imports and their derivatives in the near future and might introduce a tariff-offset initiative designed to encourage domestic chip production.

This action is part of Trump’s wider effort to reinforce US technology manufacturing and establish the nation as a leading force in artificial intelligence.

Nvidia has been a principal beneficiary of the AI-driven surge in demand for high-performance chips, with its products extensively employed in data centers that power AI services.

Previously, Trump stated that Nvidia would still be allowed to sell its H200 chip to China, though the US government would impose a 25% tariff on those transactions.

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