The US government has introduced new import tariffs on advanced AI chips from Nvidia and AMD, with the aim of channelling part of the proceeds from sales to China directly into the US treasury. According to the Financial Times, the measure is part of President Donald Trump’s broader trade and industrial policy, which explicitly intertwines economic transactions and national security.
The core of the scheme dictates that the United States will receive approximately 25 percent of the revenue chipmakers generate from the sale of certain AI processors to Chinese customers. This will be accomplished through specific tariffs on chips imported into the US and subsequently shipped to customers elsewhere in the world. This policy effectively enforces an earlier change allowing the export of certain AI chips to China, subject to financial conditions.
Industry sources indicate that tariffs were selected as a legally robust mechanism. Direct payments of revenue to the government could be more vulnerable to legal challenges, while import duties are easier to defend under existing legislation. The levies provide the US government with direct revenue from a market that was largely closed until recently.
The measure applies to Nvidia’s H200 and AMD’s MI325X, both targeted for heavy AI applications. Notably, chips used to build US AI infrastructure are excluded from this scheme to stimulate domestic investment. Nvidia and other chip designers primarily manufacture their chips through external manufacturers, particularly in Taiwan, with assembly and integration occurring elsewhere.
This initiative is part of a broader national security investigation into semiconductors that was launched last year, focusing on the United States’ dependence on foreign production and the associated strategic risks. The government is leaving open the possibility of introducing broader tariffs on semiconductors and derivative products in the future.
Simultaneously, Washington is encouraging technology companies to shift production to the US. Nvidia has committed to investing hundreds of billions of dollars in US manufacturing capacity, while TSMC is constructing new factories in Arizona. Yet, Taiwan continues to be the center of advanced chip production for the time being.
On the Chinese side, the practical implications of this measure remain unclear. Although the US permits exports of specific chips, China appears hesitant to grant access. The Chinese government is actively promoting the use of domestic chips to reduce dependence on foreign technology. Reports indicate that customs authorities have temporarily delayed the clearance of specific AI chips, highlighting this ongoing tension.
For Nvidia and AMD, the new policy introduces more clarity but also higher costs and additional complexity. For the global semiconductor industry, the move underscores how geopolitics, trade, and technology are becoming increasingly interconnected. The evolving landscape reveals the potential for significant shifts in market dynamics as governments seek to align economic interests with national security imperatives.
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