What just happened? The United States has introduced new tariffs on Nvidia and AMD accelerators, turning what was once a restriction into a revenue stream for the federal government. The 25 percent duty applies to sales of certain artificial intelligence chips shipped to China, reviving a policy that initially halted those exports.
The latest measure is designed to formalize payments that the Trump administration negotiated directly with the tech giants late last year. The structure converts a political bargain into law, ensuring that Washington receives a quarter of the value of any US-made AI processor sold to Chinese buyers. The administration says the plan protects national security while enabling major chip designers to re-enter one of their most significant markets.
Under the policy, Nvidia's H200 and AMD's MI325X chips are subject to duties when they are first imported into the United States and later resold or reexported abroad. The levy does not apply to chips used in the US to build domestic data centers or AI infrastructure.
Nvidia's H200 belongs to an earlier generation of its AI accelerators, built on architecture optimized for training large machine learning models. The processor is fabricated by TSMC.
While the new tariff is being implemented as a trade measure, its legal foundation falls under Section 232 of the Trade Expansion Act of 1962, which allows tariffs justified by national security concerns. The White House noted that this step represents only the first phase of a broader investigation into semiconductor imports, leaving open the possibility of wider duties on components and derivative products.
Last year's investigation was part of a larger effort to reduce reliance on foreign manufacturing and to push global chip production onto US soil. Trump has repeatedly said companies that invest in American fabrication facilities could receive exemptions from tariffs that might otherwise run as high as 100 percent.
Nvidia pledged to spend $500 billion over four years to expand US manufacturing and design capacity, while TSMC's Arizona projects now total more than $165 billion in planned investment.
Despite the resumption of chip exports, it is unclear whether Chinese regulators will allow shipments to proceed. Officials in Beijing have encouraged domestic companies to use locally designed processors as part of a long-term self-sufficiency strategy. People familiar with the situation told The Financial Times that customs authorities in recent weeks have delayed or denied import clearance for shipments of Nvidia's H200, though it remains unclear whether that reflects a temporary directive.
Nvidia said the new tariff framework "strikes a thoughtful balance that is great for America." AMD reiterated that it complies fully with existing US export controls.