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US imposes 25% tariff on certain Nvidia, AMD chips
17 Jan 2026, 10:17 AMThe decision is part of the US efforts for production of chips locally and reduced its dependence on chip manufacturers in Taiwan.
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The Donald Trump administration has imposed a hefty 25% tariff on certain chips including the Nvidia H200 AI processor and semiconductor from AMD called the MI325X, citing "significant economic and national security risk”.
The decision, which follows a nine-month investigation under section 232 of the Trade Expansion Act of 1962, is part of the US efforts for production of chips locally and reduced its dependence on chip manufacturers in Taiwan.
“The United States currently fully manufactures only approximately 10% of the chips it requires, making it heavily reliant on foreign supply chains,” said the White House proclamation.
Notably, the tariff exempts chips imported for domestic American research, military, or business applications.
This tax structure confirms an earlier Commerce Department authorization allowing Nvidia to distribute H200 processors to screened Chinese purchasers though now with added costs.
Despite the financial impact the tariffs will likely have on Nividia, the tech major welcomed the policy as a balanced approach that preserves American job opportunities while maintaining competitive market access.
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