President Trump imposes 25% tariff on the import of certain AI chips

January 15, 2026, 8:55 AM GMT+9 REUTERS

Summary
Tariffs aim to expand semiconductor production in the U.S.
Tariffs exclude chips for U.S. data centers, startups, and consumer applications
According to the fact sheet, broader tariffs on semiconductors may be imposed in the future

U.S. President Donald Trump imposed a 25% tariff on certain AI chips such as Nvidia's H200 AI processor and AMD’s similar semiconductor, MI325X, based on a new national security order announced by the White House.
The proclamation was issued following a nine-month investigation under Section 232 of the Trade Expansion Act of 1962, targeting multiple high-performance semiconductors and devices equipped with them for import tariffs. This measure is part of a broader effort to incentivize semiconductor manufacturers to produce more semiconductors domestically in the U.S. and reduce reliance on semiconductor manufacturers in Taiwan and elsewhere.
The declaration stated that 'the U.S. currently manufactures only about 10% of the necessary chips entirely domestically, heavily relying on foreign supply chains,' adding that this dependency poses 'significant economic and national security risks.'
In the White House fact sheet, it was noted that the tariffs are narrowly targeted and will not apply to chips or derivative devices imported for U.S. data centers, startup companies, non-data center consumer applications, private sector applications outside data centers, and public sector applications in the U.S., all major consumers of AI chips.

According to the proclamation, Commerce Secretary Howard Lutnick has broad discretion to apply further exemptions.
Shares of NVIDIA, AMD, and Qualcomm slightly fell in after-hours trading.
In December, President Trump stated that he would impose tariffs on semiconductor imports from China, accusing the Chinese government of 'unfairly' pursuing dominance in the semiconductor industry, but postponed the measure until June 2027.
This move comes in response to a year-long 'Section 301' unfair trade practices investigation by the U.S. Department of Commerce into China's export of 'legacy' chips—older technology chips—to the U.S., which was initiated under the administration of former President Joe Biden.

Questions swirled regarding the scope of chip-embedded products subject to tariffs, tariff rates, and whether there would be any exemptions for certain countries, products, or companies. Combining Wednesday's announcement with reports from December suggests that, for now, the administration has only taken minor measures on chip imports.
Last year, President Trump announced that he would allow NVIDIA to sell its H200 chips to China in exchange for a portion of the sales revenue. Legal experts questioned whether such an arrangement could violate the U.S. Constitution’s prohibition on export taxes.

The Trump administration mandated this week that semiconductor chips destined for China, which are manufactured in Taiwan, must undergo inspection by third-party agencies via the U.S. When these semiconductor chips are imported into the U.S., a 25% tariff, announced on Wednesday, will be imposed.
NVIDIA did not immediately respond to requests for comment.
AMD stated in a statement, 'We fully comply with all U.S. export control laws and policies.'
President Trump's Tariff Offensive
President Trump has introduced a series of tariff measures aimed at strengthening American manufacturing. In September, he announced extensive new import tariffs, including a 100% tariff on branded pharmaceuticals and a 25% tax on large trucks, triggering new trade uncertainties after a relatively calm period.
In April, the Trump administration announced investigations into imports of pharmaceuticals and semiconductors, arguing that heavy reliance on overseas production poses a national security threat, and declared that these products, including semiconductors, would be investigated as part of plans to impose tariffs.
U.S. companies like NVIDIA, AMD, and Intel (INTC.O) design many of the most widely used chips, most of which are manufactured overseas, largely by Taiwan Semiconductor Manufacturing Company (2330.TW). TSMC did not immediately respond to requests for comment, and the Semiconductor Industry Association could not be reached immediately.
According to the fact sheet, President Trump may impose broader tariffs on semiconductor and derivative product imports in the near future to encourage domestic manufacturing.

The annex to the executive order specifies that the 25% tariff on semiconductors imposed under this order will not overlap with the tariffs already applied by the Trump administration under other Section 232 orders. Tariffs on copper, aluminum, steel, and auto and truck parts will be exempted.