Trump imposes 25% tariff on select advanced chips, including Nvidia, AMD products

By Mucahithan Avcioglu

ISTANBUL (AA) - US President Donald Trump signed an executive order late Wednesday imposing a 25% tariff on certain advanced semiconductors, including Nvidia’s H200 chip and AMD’s MI325X, citing national security concerns.

In a fact sheet, the White House said Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to address risks associated with imports of semiconductors, semiconductor manufacturing equipment, and derivative products.

The document stated that the tariff will apply to selected advanced chips such as Nvidia’s H200 and AMD’s MI325X, but will not cover chips imported to support the development of the US domestic technology supply chain.

The White House also said Trump may impose broader tariffs on semiconductor imports and their derivatives in the near future and could introduce a tariff-offset program aimed at incentivizing domestic chip production.

The move forms part of Trump’s broader push to strengthen US technology manufacturing and position the country as a global leader in artificial intelligence.

Nvidia has been a key beneficiary of the AI-driven surge in demand for high-performance chips, with its products widely used in data centers powering AI services.

According to a previous statement by Trump, Nvidia would still be permitted to sell its H200 chip to China, but the US government would collect a 25% tariff on those sales.

Trump has repeatedly linked tariff exemptions to domestic investment commitments. In August, he threatened to impose tariffs of up to 100% on semiconductors and chips, while indicating that companies pledging to manufacture in the US could be exempt.

Since returning to office, Trump has signed multiple executive orders related to technology policy and unveiled an AI action plan aimed at reducing regulations and accelerating AI development. The administration has positioned artificial intelligence as a central pillar of Trump’s second term.

US chipmakers, particularly Nvidia, have increasingly been drawn into Washington’s trade tensions with Beijing. Nvidia and AMD said in August that they would provide the US government with 15% of their chip sales in China, although that arrangement appeared to apply primarily to older-generation chips.