TL;DR
The Trump administration has issued a presidential proclamation imposing a 25% tariff on certain advanced AI semiconductors that are produced abroad and routed through the U.S. before export to other countries, including Nvidia’s H200. The move formalizes Commerce Department decisions allowing vetted sales to Chinese customers while excluding chips used domestically in the U.S.
What happened
President Trump signed a proclamation that places a 25% tariff on selected advanced AI semiconductors manufactured outside the United States that transit U.S. territory en route to foreign customers. The tariff list specifically covers high-end devices such as Nvidia’s H200 accelerators and includes chips from other vendors like the AMD MI325X. The action codifies part of the Commerce Department’s earlier decision to permit Nvidia to ship H200 units to approved buyers in China under a vetting process. Nvidia publicly welcomed the outcome, saying the allowed shipments strike a balance with U.S. industry interests. The proclamation also states the tariff does not apply to semiconductors imported into the United States for domestic research, defense, or commercial use. The document highlighted U.S. reliance on foreign chip production, noting the country manufactures only about 10% of the chips it consumes.
Why it matters
- Raises the effective cost of some advanced AI chips exported to China by 25% when they transit the U.S., potentially altering buyer economics.
- Formalizes a pathway for vetted shipments to Chinese customers while applying a trade levy, reflecting a calibrated U.S. export-control posture.
- Signals U.S. concern about dependence on foreign semiconductor supply chains and links trade policy to national security objectives.
- May influence manufacturers’ production and routing choices, including decisions about where to produce and ship high-end AI accelerators.
Key facts
- A presidential proclamation imposes a 25% tariff on certain advanced AI semiconductors that are produced abroad and then pass through the U.S. before export.
- The tariff applies to Nvidia’s H200 AI chips and includes other products such as AMD’s MI325X.
- The move formalizes part of the Commerce Department’s prior decision to allow vetted shipments of H200 chips to customers in China.
- Nvidia publicly supported the decision and emphasized the ability to sell H200 to approved commercial customers vetted by the Commerce Department.
- Chips imported into the United States for domestic research, defense, or commercial use are excluded from the tariff.
- The proclamation noted that the U.S. currently manufactures roughly 10% of the chips it requires, framing the policy as addressing supply-chain and security risks.
- Reports indicate strong demand for H200 units, with Nvidia reportedly considering increasing production due to early orders.
- Chinese authorities are reportedly drafting guidance on how many overseas semiconductors companies in China can buy, which could affect imports.
What to watch next
- How the Chinese government’s draft rules on overseas semiconductor purchases will affect approvals for Nvidia H200 shipments.
- Whether Nvidia follows through on any plans to scale H200 production in response to demand and the new tariff.
- Not confirmed in the source: the degree to which the 25% tariff will change final prices for Chinese buyers or reroute supply chains away from U.S. transit points.
Quick glossary
- Tariff: A tax or duty imposed by a government on imported or exported goods, often intended to protect domestic industries or influence trade flows.
- Semiconductor: A material or device that has electrical conductivity between that of a conductor and an insulator, commonly used to make integrated circuits and chips.
- AI accelerator: A specialized chip designed to speed up artificial intelligence workloads, such as neural network training and inference.
- Vetting: A screening or approval process used by authorities to assess and authorize entities or transactions, often for national security or regulatory reasons.
Reader FAQ
Which chips are explicitly mentioned as covered by the tariff?
The proclamation cites Nvidia’s H200 and includes chips such as the AMD MI325X among the covered advanced AI semiconductors.
Does the tariff apply to chips used within the United States?
No. The order excludes chips imported into the U.S. and used domestically for research, defense, or commercial purposes.
Will Chinese companies still be able to buy Nvidia H200 chips?
The Commerce Department has allowed sales to vetted customers in China; the tariff applies to covered chips transiting the U.S. before export.
Why did the administration impose this tariff?
The proclamation frames the measure as addressing risks from U.S. reliance on foreign chip supply chains and national security concerns.
After months of rumors the Trump administration was going to impose tariffs on semiconductors, a tariff has been announced for some chips. The tariff only applies to certain semiconductors, including…
Sources
- The US imposes 25% tariff on Nvidia’s H200 AI chips headed to China
- The US imposes 25% tariff on Nvidia's H200 AI chips …
- Trump imposes 25% tariff on Nvidia AI chips and others, …
- Trump clears way for Nvidia H200 sales to China, 25% …
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