President Donald Trump has imposed a 25% tariff on imports of certain high-end computing chips, including Nvidia’s H200 and AMD’s MI325X, marking a significant escalation in his administration’s trade strategy toward the semiconductor industry. The move, announced on Wednesday, targets advanced chips central to the development of artificial intelligence, while including exemptions for chips used in the expansion of U.S. technology manufacturing infrastructure. According to a White House fact sheet, the tariff applies specifically to “certain advanced computing chips” and is framed as a measure to protect national security. The administration invoked Section 232 of the Trade Expansion Act of 1962, which permits the president to restrict imports deemed a threat to national security. While the exact criteria for qualifying for the exemption remain unclear, the White House stated that chips imported for domestic semiconductor supply chain development would be excluded. The proclamation also extends to a broader category of goods, including semiconductors, semiconductor manufacturing equipment, and their derivative products, regardless of country of origin. The administration has not yet provided detailed guidance on how companies can apply for the exemption or how enforcement will be carried out. Trump’s announcement signals a broader effort to reshore advanced chip manufacturing and strengthen U.S. technological dominance in the AI era. The move aligns with his previous statements advocating for greater control over the export of cutting-edge AI hardware. Notably, he has previously suggested that Nvidia could continue selling certain advanced chips to China—like the H200—provided the U.S. government receives 25% of the revenue generated from those sales. The tariff is not the first time Trump has used trade leverage to influence semiconductor investment. Last year, he floated the idea of imposing tariffs as high as 100% on chips and related components, while offering relief to companies that commit to building or expanding manufacturing facilities in the United States. Nvidia and AMD have not yet issued public statements in response to the new tariff. The policy could impact global supply chains, increase costs for data centers, and influence how AI companies source critical hardware. The White House also indicated that this action may be just the beginning, warning that additional tariffs on semiconductors and related technologies could be introduced in the future.