US President Donald Trump on Wednesday imposed a 25% tariff on certain advanced computing chips, such as the Nvidia H200 AI processor and a similar semiconductor from AMD called the MI325X, according to a fact sheet released by the White House.
The proclamation, which cited national security as a justification, is part of a broader effort to create incentives for chipmakers to produce more semiconductors in the US and decrease reliance on chip manufacturers in places like Taiwan.
"The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains. This dependence on foreign supply chains is a significant economic and national security risk," the proclamation said.
US President Donald Trump has deployed an array of tariffs aimed at bolstering American manufacturing, announcing in September sweeping new import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, triggering fresh trade uncertainty after a period of relative calm.
In April, the Trump administration announced probes into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on them, arguing that extensive reliance on their foreign production poses a national security threat.
While US companies like Nvidia, AMD and Intel design many of the most widely used chips, most are made overseas, many by Taiwan Semiconductor Manufacturing Co. TSMC did not immediately respond to a request for comment.
The tariff will be narrowly focused and will not apply to chips imported for US data centers - a huge consumer of AI chips - startups, non-data center consumer applications, non-data center civil industrial applications and US public sector applications.
Trump, in the near future, may also impose broader tariffs on imports of semiconductors and their derivative products to incentivize domestic manufacturing, according to the fact sheet.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
