U.S. Imposes 25% Tariff on Nvidia's H200 AI Chip Exports to China

The United States has imposed a 25% tariff on advanced AI semiconductors, including Nvidia's H200 chips, destined for export to China. President Donald Trump signed the proclamation on Wednesday, targeting chips produced outside the U.S. that pass through the country before reaching international customers.

This measure formalizes the Department of Commerce's December decision to permit Nvidia to ship H200 chips to vetted Chinese customers. The tariff also applies to other companies' products, such as AMD's MI325X chips.

Nvidia expressed support for the administration's decision. An Nvidia spokesperson stated that offering the H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.

The proclamation highlights the nation's reliance on foreign supply chains, noting that the U.S. manufactures only about 10% of the chips it requires. This dependence is described as a significant economic and national security risk.

The tariff does not apply to chips imported into the U.S. for domestic use in research, defense, or commercial applications. The administration aims to encourage domestic semiconductor production and reduce reliance on foreign manufacturers.