Artificial intelligence has become a cornerstone of President Donald Trump’s second term, with the administration promoting looser regulation and stronger domestic manufacturing to position the United States as a global technology leader. Trump has signed multiple executive orders on AI and repeatedly argued that chip production is critical to national security and economic competitiveness.
Semiconductor companies have found themselves caught between Washington’s trade policies and global demand. Nvidia and AMD, whose processors are essential for powering AI data centers, have navigated export controls, especially involving China. Industry leaders have warned that tight restrictions could spur innovation abroad rather than protect U.S. dominance.
Trump has previously threatened sweeping tariffs on semiconductors, including a proposed 100 percent levy announced last August. At the time, he signaled that companies investing in U.S. manufacturing would be spared. Earlier this year, the administration initiated an investigation into chip imports, a prerequisite for imposing national security based trade restrictions.
On Wednesday, the White House moved forward with that approach. Trump enacted a 25 percent tariff on “certain advanced computing chips,” according to a fact sheet released by the administration. The tariff applies to products such as Nvidia’s H200 chip and AMD’s MI325X, using authority under Section 232 of the Trade Expansion Act of 1962.
The administration said chips imported to help build the U.S. technological supply chain would be exempt, though it did not specify how companies could qualify. The White House did not immediately respond to questions seeking clarification.
The fact sheet also warned that Trump “may impose broader tariffs on imports of semiconductors and their derivative products” in the near future, signaling that further trade action against the chip industry could follow.
Nvidia welcomed the decision, saying it supports American jobs and manufacturing. AMD said it complies “with all U.S. export control laws and policies.”
The move places advanced semiconductors at the center of Trump’s economic and national security strategy, while raising fresh uncertainty for a global industry already reshaped by trade disputes and geopolitical competition.
Related Readings:
