After months of rumors that the Trump administration would impose tariffs on semiconductors, tariffs have been announced for some chips. The tariffs apply only to certain semiconductors, including Nvidia’s H200 advanced AI chip that will be shipped to China.
President Donald Trump sign the proclamation Wednesday that calls for a 25% tariff on advanced AI semiconductors that have been produced outside the US and then pass through the US before being exported to customers in other countries.
This news formalizes a key component of the decision of the US Department of Commerce to give Nvidia the green light to start sending its H200 advanced AI chips for vetted customers in China in December. It also includes chips from other companies, including the AMD MI325X.
Despite the tariffs, Nvidia has publicly welcomed the move, which allows it to sell its chips to approved customers.
“We applaud President Trump’s decision to allow the American chip industry to compete to support high-paying jobs and manufacturing in America. Offering H200 to commercial customers is approved, vetted by the Department of Commerce, a wise balance strike that is good for America,” a spokesperson for Nvidia emailed TechCrunch.
abide demand for this H200 semiconductor. Nvidia is reportedly considering ramping up production of the chip due to a rush of early orders from the Chinese company.
Demand is only one factor. The other is how the Chinese government decides to regulate these imports.
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China finds itself in a similar but different situation to the US when it comes to chip production and the global AI race. China wants to boost its domestic semiconductor industry, but the country also doesn’t want to be left behind while waiting for domestic technology to catch up with international competitors.
China’s central government is working on rules and guidelines on how many semiconductors Chinese companies can buy from abroad, according to the report reports from Nikkei Asia. This will allow some to buy Nvidia chips and will reverse from the country’s current suffering towards chip imports.
Wednesday’s executive order does not apply to chips imported into the U.S. and then used in the country for research, defense, or commercial purposes.
“The United States currently only produces about 10% of the chips it needs, so it is very dependent on foreign supply chains. This dependence on foreign supply chains is a significant economic and national security risk,” the proclamation said.