Trump Approves Nvidia H200 Sales to China with 25% Tariff Amid Regulatory Confusion
The Trump administration has authorized Nvidia to sell its H200 AI chips to China, imposing a 25% surcharge on sales revenue. This decision comes as China drafts regulations to limit, rather than prohibit, purchases of advanced foreign AI chips by domestic companies.
Chinese customs authorities have reportedly blocked H200 imports this week, creating immediate friction with the U.S. approval. President TRUMP defended the move, noting the H200 no longer represents Nvidia's cutting-edge technology while acknowledging its competitive value.
New Commerce Department rules require Nvidia to maintain adequate U.S. supply while capping China shipments at 50% of total U.S. volumes. Critics argue the policy risks eroding America's AI leadership and potentially benefits Chinese military applications.
