Trump introduces 25% tariff on export of chips, including Nvidia H200, AMD MI325X — figure could increase in the future

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In a new press release, the Trump Administration let it be known that it would apply a 25% tariff to Nvidia H200, AMD MI325X, among unspecified "advanced computer chips." This latest move partially reverses the administration's position of blocking the sale of said chips, at the time justified by concerns for national security and AI leadership.

The latest tariff's scope is extremely narrow and is purportedly pointed at promoting both domestic usage and the production of advanced chip technology. The White House's press release specifically mentions that the U.S. consumes 25% of the market, yet only produces 10%, and goes on to mention how the nation is dependent on the tech for military, energy, and medical uses, among others.

Importantly, the tariff does not apply to what can be summarized as domestic usage: stateside datacenters, R&D, startups, non-datacenter applications, and the public sector. The end result is that Nvidia and AMD's stateside customers won't pay the tariff, but anyone else will — apparently even American companies building datacenters abroad. The tariffs could also increase, as in 90 days' time, President Trump will hear again from the Secretary of Commerce to potentially make further adjustments.

It's not just a matter of exported chips commanding a higher price, too. As of yesterday, exporters must prove that domestic demand is fulfilled before sending any chips across borders. Additionally, the rule implicitly prevents companies from designing cut-down versions of their wares to get past export restrictions, like the Nvidia B40 and AMD MI308. The measures should also provide some measure of protection to prevent grey imports of certain hardware to certain countries, or at the very least, tax some of that movement.

At the time of this publication, Beijing has so far been quiet on the matter. The latest report from the East was that customs officials were being told to block imports of H200 chips altogether, forcing the hand of big players like Alibaba to use home-grown chips like those from Huawei. So, not only are these chips unlikely to be exported to China to begin with, but they'd be returned to the sender.

China isn't the only market, though, and the latest tariffs specifically target non-US datacenters. H200 and MI325X silicon can still be exported to other nations, but the latest development means that AI players will have to pay extra to make datacenters in Europe, India, and other tech-heavy zones across the globe. In President Trump's own words, "making 25% of the sale of those chips" should be a sizable influx.

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Bruno Ferreira is a contributing writer for Tom's Hardware. He has decades of experience with PC hardware and assorted sundries, alongside a career as a developer. He's obsessed with detail and has a tendency to ramble on the topics he loves. When not doing that, he's usually playing games, or at live music shows and festivals.

7 Comments Comment from the forums

JTWrenn

So is it time to start throwing hardware into the harbor yet?
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SonoraTechnical

Trump wants the USA to become a World Eater. Takeover otherwise sovereign nations and exploit them for their resources (Venzuela, Greenland, Gaza?), That mobilization costs money. So now were aren't concerned about withholding products in the interests of national security, but rather are focused on the opportunity to raise money for the gov't coffers by selling those same products.
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bit_user

I thought he couldn't impose export taxes. So far, his imposition of tariffs is under a law granting him emergency powers to do so, but I thought it applied only to import taxes.

Previously, he had gotten AMD and Nvidia to agree to pay an export tax, but I thought that was merely through goodwill, on their part.
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reflex25

JTWrenn said:
So is it time to start throwing hardware into the harbor yet?
The San Francisco chip party?
Now Trump is taxing chip imports and chip exports - the very "oil" of high technology advances.
Far from encouraging domestic US production it will drive away high tech businesses - even US ones.
Designers abroad will avoid utilising US chips in new circuits, just like Canadian have more or less stopped drinking Bourbon.
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bit_user

reflex25 said:
Designers abroad will avoid utilising US chips in new circuits, just like Canadian have more or less stopped drinking Bourbon.
To be honest, I think that Rubicon was crossed when IP was blocked from Huawei and ZTE, during his first term.
https://en.wikipedia.org/wiki/Huawei#Before_the_2020_semiconductor_ban
I expected that weaponization of IP to be challenged by the industry in court, but it never was. Since then, we've seen indigenous processor developments in places like China and Europe gain steam.
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reflex25

Keeping PRC firmware out of "western" networks to prevent traffic snooping or interdiction of service was a sensible move - afer all they have form for this.
OTOH so do Sony: - https://en.wikipedia.org/wiki/Sony_BMG_copy_protection_rootkit_scandal
Reply
bit_user

reflex25 said:
Keeping PRC firmware out of "western" networks
Unrelated. I was talking only about the prior export ban on US IP for use by Huawei and ZTE, and that was due to their violation of sanctions on Iran. Nothing to do with network security.
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