The US imposes 25% tariff on Nvidia’s H200 AI chips headed to China

After months of rumors that the Trump administration would impose tariffs on semiconductors, a tariff has been announced on some chips. The tariff only applies to certain semiconductors, including the Nvidia H200 advanced AI chips that will be shipped to China.

President Donald Trump signed a proclamation On Wednesday, that meant a 25% tariff on advanced AI semiconductors produced outside the US and then passing through the US before being exported to customers in other countries.

The news formalizes a key part of the US Commerce Department’s decision to give Nvidia the green light to start shipping its H200 advanced AI chips to vetted customers in China in December. It also includes chips from other companies, including the AMD MI325X.

Despite the tariffs, Nvidia publicly applauded the move, which will allow it to sell the chip to approved customers.

“We applaud President Trump’s decision to allow America’s chip industry to compete in support of good-paying jobs and manufacturing in America. Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” an Nvidia spokesperson emailed TechCrunch.

There is a demand for these H200 semiconductors. Nvidia was reportedly considering ramping up production of these chips due to a rush of early orders from Chinese companies.

However, demand is only one factor. The other is the way the Chinese government decides to regulate these imports.

China is in a similar, yet different situation than the US when it comes to chip production and the global AI race. China wants to boost its domestic semiconductor industry, but it also doesn’t want to fall behind as it waits for its domestic technology to catch up with international rivals.

China’s central government is working to set rules and guidelines on how many semiconductors Chinese companies can buy abroad reporting from Nikkei Asia. This would allow some purchase of Nvidia’s chips and would be a reversal of the the country’s current setback in chip imports.

Wednesday’s executive order does not apply to chips imported into the US and then used in the country for research, defense or commercial purposes.

“The United States currently fully produces only about 10% of its needed chips, leaving it heavily dependent on foreign supply chains. This dependence on foreign supply chains poses a significant economic and national security risk,” the proclamation said.