President Trump has announced a new tariff of 25% on certain advanced computing chips, as per a statement and fact sheet released by the White House on Wednesday. These chips include NVIDIA’s H200 chip and AMD’s MI325X chip. However, chips imported to support the construction of American tech supply chains will not be subject to these restrictions.
This announcement comes after a nine-month investigation conducted under Section 232 of the 1962 Trade Expansion Act, targeting high-end semiconductors that meet specific performance standards and the equipment containing these semiconductors, imposing import tariffs on these products. The aim is to incentivize chip manufacturers to produce more semiconductors in the United States and reduce reliance on chip manufacturers in Taiwan and other countries.
The White House stated, “Currently, the U.S. produces only about 10% of the chips it needs, heavily relying on foreign supply chains.” The White House also added that this reliance poses “significant economic and national security risks”.
The fact sheet from the White House outlines that tariffs will specifically target certain products and will not apply to chips and derivative equipment imported for use in U.S. data centers (the primary market for artificial intelligence chips), start-ups, non-data center consumer applications, non-data center industrial applications, and U.S. public sector applications.
According to the White House announcement, Commerce Secretary Lutnick has broad discretion to further implement exemptions.
In practical terms, this means that companies like NVIDIA would have to pay a 25% tariff on H200 artificial intelligence processors from Taiwan before exporting them to China. While companies like NVIDIA, AMD, and Intel design many widely-used chips, most of these chips are manufactured overseas, with many produced by TSMC.
On Tuesday, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) revised its policy on chip sales to China. BIS stated that license applications for chips like NVIDIA’s H200, AMD’s MI325X, and similar chips will be reviewed on a case-by-case basis as long as they meet certain security requirements. Companies must demonstrate that exporting to China will not impact U.S. customer demand and that Chinese buyers have been vetted.
In April 2025, the Trump administration initiated investigations into the import of pharmaceuticals and semiconductors. The White House fact sheet stated that previously, the Commerce Secretary had completed an investigation under Section 232 of the Tariff Act. The investigation found that the current quantity and situation of imported semiconductors, semiconductor manufacturing equipment, and related products posed a threat to national security. The U.S. lacks the capacity to produce semiconductors, advanced semiconductor manufacturing equipment (such as advanced lithography and etching tools), and their derivatives to meet domestic demand, leading to a reliance on foreign resources to meet domestic needs.
According to the White House fact sheet, Trump may impose broader tariffs on the import of semiconductors and their derivatives in the near future to stimulate domestic manufacturing.
The fact sheet emphasizes the critical importance of semiconductors to the U.S. economy, industry, and military strength. If the supply chain dependent on imports is disrupted, it could weaken U.S. industrial and military capabilities. Today’s actions aim to address national security threats by encouraging domestic semiconductor production and reducing U.S. reliance on foreign resources and supply chains.
The White House explicitly stated that all 25% tariffs imposed on semiconductors will not overlap with other tariffs imposed under different Section 232 provisions by the Trump administration. Additionally, tariffs will not apply to copper, aluminum, steel, as well as automobile and truck components.