US imposes 25% tariff on Nvidia chips amid national security concerns
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The news: US President Donald Trump has imposed a 25% tariff on sales of Nvidia's H200 AI processor and AMD's MI325X on Wednesday. Trump cited national security as justification for the tariffs amid an effort to create incentives for chipmakers to produce more semiconductors in the US and reduce international reliance on major chip manufacturers in offshore locations, such as Taiwan and China.
The context: The White House published a media statement confirming Trump had signed a proclamation to address national security concerns over imports of semiconductors and manufacturing equipment in a bid to support America's semiconductor industry.
The proclamation follows the Secretary of Commerce’s completion of a Section 232 investigation under the Act, which found that the current quantities and circumstances of imports of semiconductors, semiconductor manufacturing equipment and their derivative products threaten to impair national security.
The White House said semiconductors are essential to the United States’ economic, industrial and military strength, and that disruption to import-reliant supply chains could strain the nation’s industrial and military capabilities.
What they said: "On day one, President Trump established his America First Trade Policy to make America's economy great again," the statement said.
"Today's action will address the threat to national security by incentivising domestic production of semiconductors and reducing our nation's reliance on foreign sources and supply chains."
The source: The White House
