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⁠Trump Has Announced New Tariffs On Nvidia And AMD, What Does This Mean?

## Regulation: New Tariffs on Advanced Computing Chips

EBy Emily CarterJan 15, 20261 min read

Regulation: New Tariffs on Advanced Computing Chips

On Wed, Jan 14, 2023, the White House announced that President Donald Trump signed a proclamation imposing a 25% tariff on certain imported advanced computing chips. This measure affects products such as Nvidia’s H200 AI processor and AMD’s MI325X chip.

The tariff follows a nine-month investigation under Section 232 of the Trade Expansion Act of 1962, examining the impact of high-performance semiconductor imports on national security. The investigation concluded that the import of these chips, which meet specific performance thresholds, poses a risk, justifying the imposition of tariffs.

The order highlights concerns over supply chain vulnerabilities, noting that the United States currently produces only approximately 10% of the chips required domestically. This reliance on foreign production underscores the rationale for the new tariff.

The tariff does not apply to chips imported for use in U.S. data centers, startups, or consumer products not linked to data centers. Non-data center civil industrial uses and applications tied to the U.S. public sector are also exempt. The Commerce Secretary has the discretion to approve additional exemptions as necessary.

This measure affects products such as Nvidia’s H200 AI processor and AMD’s MI325X chip.
Emily Carter · Thehackingpost

Additionally, the 25% duty will not compound with other Section 232 tariffs, such as those on copper, aluminum, steel, autos, or truck parts.

The proclamation identifies heavy reliance on foreign chip supply chains as a significant national security risk. It emphasizes the importance of semiconductors for economic strength, industrial capacity, and military capability. The current domestic production does not meet demand, leading to dependence on overseas sources.

The administration may consider additional tariffs on semiconductors and related products, along with a potential tariff offset program tied to domestic manufacturing incentives. A recent requirement mandates that chips destined for China must pass through the United States for third-party testing, subjecting them to the new 25% tariff.

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AMD has stated compliance with U.S. export control laws, while Nvidia has not provided comments on the matter.

Based on reporting by techround.co.uk.

AI transparency. This article was produced with the assistance of artificial intelligence and published under human editorial oversight. AI systems can make mistakes. Read how we use AI (EU AI Act, Art. 50).
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