Trump Slaps 25% Section 232 Tariff on NVIDIA, AMD AI Chips

The Trump administration has announced it will apply an immediate 25% tariff on a narrow set of advanced computing chips, including NVIDIA’s H200 and AMD’s MI325X, using Section 232 national-security authorities. The measure takes effect for covered chips entered on or after Jan. 15, 2026.

The White House says the tariff is designed to reduce US dependence on foreign semiconductor supply chains while protecting “economic and national security,” as high-end chips become foundational inputs for AI, defense systems, and critical infrastructure.

Section 232 allows the President to impose import restrictions after a Commerce/BIS investigation concludes imports threaten US national security, using a statutory timeline (270-day report, 90-day presidential decision, and 15-day implementation) and a broad factors test that includes both defense needs and economic welfare.

Broader Proclamation Targets Chips, Chipmaking Tools, and “Derivative Products”

Alongside the narrow AI-chip duty, US President Donald Trump signed a proclamation aimed more broadly at imports of semiconductors, semiconductor manufacturing equipment, and derivative products. The proclamation frames chips and chipmaking tools as strategic goods whose import reliance can “impair” national security, and positions the action as part of a push to expand domestic production and supply-chain resilience.

The proclamation outlines a two-track approach:

• Near-term negotiations with foreign jurisdictions, led by the Secretary of Commerce and the USTR, intended to reinforce domestic semiconductor capacity and supply-chain security

• A pathway toward broader semiconductor tariffs later, depending on the outcome of those talks

The administration is also trying to avoid penalizing imports that directly support US expansion. The White House fact sheet says the 25% tariff will not apply to chips imported to support the buildout of the US technology supply chain and strengthening domestic manufacturing capacity for semiconductor derivatives. Other exemptions include chips tied to US data centers, startups, consumer uses, civil industries, and public sector applications, reports Reuters. 

Shifting Stance on China-bound AI Hardware

The tariff move arrives as the administration faces scrutiny over permitting certain high-end AI chips to reach China. The Trump administration authorized NVIDIA to sell its H200 chips to China under some conditions, drawing criticism from lawmakers and former officials who argue it could erode US strategic advantage in AI.

A US-China deal would allow NVIDIA to ship select high-end AI chips to approved customers in China, an apparent easing versus prior restrictions, reports MBN. 

In December, Trump said he would impose tariffs on Chinese semiconductor imports, framing the move as a response to Beijing’s “unreasonable” push for chip-industry dominance. However, he postponed implementation, delaying the tariffs until June 2027, reports Reuters.

China, meanwhile, is reportedly weighing its own controls on the volume of imported high-end chips such as the H200, highlighting how the supply chain is increasingly shaped by policy on both sides.

China’s Foreign Ministry signaled pushback to both the AI-chip tariff and the broader US semiconductor trade actions. Chinese Foreign Ministry Spokesperson Mao Ning stated in a recent press conference: “On US chips export to China and the tariffs issue, China has made clear its position more than once.” 

Separately, in late December, spokesperson Lin Jian said China was “firmly opposed” to what he described as the US arbitrary use of tariffs to suppress Chinese industries, warning such measures would disrupt global production and supply chains and could “boomerang” on the US while harming others. He urged Washington to address concerns through dialogue and warned China would take corresponding measures to safeguard its legitimate rights and interests if the US did not change course.