Trump Imposes 25% Tariffs on Advanced AI Chips to Boost Domestic Production

Thursday 15 January 2026 09:22

The United States has imposed a 25% tariff on certain advanced AI chips, including Nvidia’s H200 AI processor and AMD’s MI325X, under a new White House directive citing national security concerns.

The decision follows a nine-month investigation under Section 232 of the Trade Expansion Act of 1962, targeting high-performance semiconductors and associated devices that meet specific technical criteria. The tariffs aim to incentivize domestic chip manufacturing and reduce reliance on foreign suppliers, particularly from regions like Taiwan.

According to the Wall Street Journal, the U.S. currently produces only about 10% of the chips it needs, making it heavily dependent on international supply chains—a dependency considered a significant economic and national security risk. The move is part of a broader strategy to strengthen the domestic semiconductor industry and secure critical supply chains for advanced AI technologies.