Trump Imposes 25% Tariff on Select AI Chips as Part of Nvidia’s China Export Deal
US President Donald Trump has enacted a 25% tariff on imports of specific advanced semiconductors, a move tied to a deal allowing Nvidia Corp. to export Taiwan-made H200 artificial intelligence processors to China. The tariff applies immediately upon arrival in the US before shipment to Chinese clients.
Nvidia, which designs the H200 but relies on Taiwan Semiconductor Manufacturing Company (TSMC) for production, secured approval from the TRUMP administration in December for these sales. Trump framed the tariff as a strategic measure, stating it captures US value from strong Chinese demand without stifling trade.
The decision follows a Section 232 investigation identifying national security risks in broader chip imports, though those tariffs were delayed. Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer were directed to negotiate terms.
