US imposes 25% tariff on Nvidia and AMD AI chips bound for China, turning restrictions into revenue

US government to take 25% cut of AMD, NVIDIA AI sales to China

US President Donald Trump has announced new tariffs on Nvidia and AMD as part of a novel scheme to enact a deal with the technology giants to take a 25 percent cut of sales of their AI processors to China. In December, the White House said it would allow Nvidia to start shipping its H200 chips to China, reversing a policy that prohibited the export of advanced AI hardware. However, it demanded a 25 percent cut of the sales. The new US tariffs on certain chips, announced on Wednesday, were designed to implement these payments and protect the unusual arrangement from legal challenges, according to several industry executives. The move enacts the latest element of Trump's transactional trade policy and allows the government to profit from a change to its export controls. "We're going to be making 25 percent on the sale of those chips, basically. So we're allowing them to do it, but the United States is getting 25 percent of the chips in terms of the dollar value. And I think it's a very good deal," Trump said in the Oval Office on Wednesday. A White House factsheet said the new tariff would apply to chips such as the H200 and rival AMD's MI325X that were first imported into the US and "transshipped" back to customers around the world. It would also cover other US companies seeking to send AI chips abroad. Nvidia and most of its US peers rely on Taiwan Semiconductor Manufacturing Company to manufacture the chips they design, including the H200, an advanced AI processor that belongs to an older generation of Nvidia hardware. Chips that are imported to the US to build out the country's domestic AI infrastructure would not be subjected to a levy, according to a presidential proclamation released on Wednesday. The new duties are part of a sweeping national security probe launched by the Trump administration last year as the president kicked off a trade war against major US partners, roiling global markets. These so-called Section 232 tariffs rely on a different legal basis from the emergency powers invoked by Trump to impose other global levies, which face a looming Supreme Court challenge. However, Wednesday's proclamation warned a second phase of the national security probe could result in "broader tariffs on imports of semiconductors and their derivative products." Trump has threatened to hit chips with tariffs of up to 100 percent but over the past year has offered carve-outs and exemptions to companies who pledge to build more manufacturing capacity in the US. Early last year, Nvidia committed to spending $500 billion over the next four years on manufacturing its products in the US, while TSMC has been building facilities in Arizona as part of a $165 billion investment project. The new TSMC plant started producing Nvidia's most advanced Blackwell chips for the first time in October. The vast majority of the world's most advanced chips, however, are still manufactured in Taiwan before being shipped to other locations to be packaged or installed inside servers and devices. Despite Trump's decision to allow H200 exports, it remains unclear whether China will grant access. Beijing has been pushing tech companies to use domestic chips in a bid to achieve self-sufficiency in semiconductor production. The FT previously reported that regulators were discussing ways to permit limited access to H200 chips, which tech giants such as Alibaba, ByteDance and Tencent prefer because of their higher performance and easier maintenance. Two people with knowledge of the matter said Chinese customs officials had recently told logistics companies at the country's ports not to submit clearing requests for H200 chips, though it was unclear whether the directive was temporary. China's General Administration of Customs did not respond to a request for comment. Nvidia on Wednesday welcomed the US move, saying Trump's policy "strikes a thoughtful balance that is great for America." AMD said it complied with all US export laws and policies. The White House on Wednesday also unveiled the results of an investigation into critical minerals, concluding that US dependence on imports posed a national security threat. Trump directed commerce secretary Howard Lutnick to negotiate deals with trading partners that included "trade-restricting measures" such as price floors for metals including gallium, germanium and rare earths. The order stopped short of imposing tariffs on the materials, which are broadly used in industries from technology to energy and defence. But the White House said the president might take other action to address the risks, including if deals were not done within 180 days. China dominates the market for a host of critical minerals, including rare earths, an advantage it has leveraged in recent months by cutting off access.

The US imposes 25% tariff on Nvidia's H200 AI chips headed to China | TechCrunch

After months of rumors the Trump administration was going to impose tariffs on semiconductors, a tariff has been announced for some chips. The tariff only applies to certain semiconductors, including the Nvidia H200 advanced AI chips set to ship to China. President Donald Trump signed a proclamation on Wednesday that entailed a 25% tariff on advanced AI semiconductors that have been produced outside the U.S. and then pass through the U.S. before being exported to customers in other countries. This news formalizes a key component of the U.S. Department of Commerce's decision to give Nvidia the green light to start shipping its H200 advanced AI chips to vetted customers in China in December. It also includes chips from other companies, including the AMD MI325X. In spite of the tariffs, Nvidia publicly cheered the move, which allows it to sell the chip to approved customers. "We applaud President Trump's decision to allow America's chip industry to compete to support high-paying jobs and manufacturing in America. Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America," an Nvidia spokesperson emailed TechCrunch. There is demand for these H200 semiconductors. Nvidia was reportedly considering ramping up production on these chips due to a rush of early orders from Chinese companies. Demand is just one factor though. The other is how the Chinese government decides to regulate these imports. China finds itself in a similar yet different situation to the U.S. when it comes to chip production and the global AI race. China wants to boost its domestic semiconductor industry, but the country also doesn't want to fall behind while it waits for its domestic tech to catch up to international rivals. The Chinese central government is working to draft rules and guidelines of how many semiconductors Chinese companies can purchase from overseas, according to reporting from Nikkei Asia. This would allow for some purchasing of Nvidia's chips and would be a reversal from the country's current adversity toward the chip imports. Wednesday's executive order does not apply to chips that are imported into the U.S. and then used in the country for research, defense, or commercial purposes. "The United States currently fully manufactures only approximately 10% of the chips it requires, making it heavily reliant on foreign supply chains. This dependence on foreign supply chains is a significant economic and national security risk," the proclamation stated.

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

The White House's arm-wrestling match with Beijing continues. 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.

US Sets 25% Tariff on Some Chip Sales as Part of Nvidia Deal

President Donald Trump directed officials to pursue negotiations on imports and report back in 90 days, and may announce new tariffs and an offset program to incentivize domestic manufacturing in the near future. The US imposed a 25% tariff on imports of certain advanced semiconductors, a key step in an agreement blessed by President Donald Trump allowing Nvidia Corp. to ship Taiwan-made H200 artificial intelligence processors to China. Under an order Trump signed on Wednesday, the government would collect the duty on the chips as they're brought to the US before final shipment to Chinese customers and other foreign markets. Nvidia relies on Taiwan Semiconductor Manufacturing Co. to produce the chips it designs, including the H200 that was cleared for sale to China by Trump in December. "It's not the highest level, but it's a very good level. And China wants them, and other people want them, and we're going to be making 25% of the sale of those chips, basically," Trump told reporters Wednesday during a signing ceremony. The president is holding off for now on applying tariffs to a broader swath of foreign-made chips, following an investigation under Section 232 of the Trade Expansion Act that found they harm US national security. Instead, he directed Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to "pursue negotiation of agreements" on imports and to report back in 90 days, according to the proclamation he signed. Trump may announce new tariffs and an accompanying offset program to incentivize domestic manufacturing "in the near future," a White House fact sheetBloomberg Terminal said. The 25% tariff applies to "a very narrow category of semiconductors that are an important element of my administration's AI and technology policies," the proclamation said. That includes the H200 and Advanced Micro Devices Inc.'s MI325X, according to the fact sheet. There is an exception for those chips that are "imported to support the buildout of the United States technology supply chain." Trump signed the measure a day after the Commerce Department's Bureau of Industry and Security eased its criteria for securing licenses to export H200 chips to China. That surcharge is a condition Trump required in exchange for allowing Nvidia to sell in China. The US must still take additional actions before Nvidia can send the chips to China, including the approval of export licenses by BIS. That process can take weeks or months and it's unclear when it will conclude. Read more on the US, China and chips: Taiwanese products have generally faced a 20% tariff upon entering the US, though semiconductors have been spared as Commerce officials conduct a national security investigation into whether new levies should be applied across the chip sector. Trump has yet to follow on imposing tariffs, as negotiations with Taiwan and major technology companies continue. Top Taiwanese officials are traveling to Washington on Wednesday for talks on finalizing a deal to lower its overall tariff rate to 15% and expand TSMC production facilities in the US, according to people familiar with the matter. Follow the latest in global politics. Follow the latest in global politics. Follow the latest in global politics. Get insights from reporters around the world in the Balance of Power newsletter. Get insights from reporters around the world in the Balance of Power newsletter. Get insights from reporters around the world in the Balance of Power newsletter. Bloomberg may send me offers and promotions. Plus Signed UpPlus Sign UpPlus Sign Up By submitting my information, I agree to the Privacy Policy and Terms of Service. Trump's decision marked a significant victory for Nvidia, which has pushed US policymakers to loosen export controls that have kept the company from selling its AI chips to the world's largest semiconductor market. Nvidia Chief Executive Officer Jensen Huang has forged a close relationship with Trump and has used those ties to persuade the president that restrictions only boost Chinese domestic giants, such as Huawei Technologies Co. It's a turnabout from years of US policy that sought to limit Beijing's access to advanced American technologies and has provoked blowback from Democrats and national-security hawks in Washington who say the move will embolden an adversary that is keen on gaining ground in the AI race. Trump took a hard line against Beijing at the outset of his presidency, making good on a campaign promise to crack down on its economic practices. But after triggering a trade war by imposing sky-high tariffs on Chinese goods, he eased off his pressure campaign by striking a truce with President Xi Jinping. Trump also made it clear he's OK with doing some business with Beijing in sensitive areas, as long as the US government gets a financial cut. He teased that a similar arrangement on chip exports is in the works for other companies, including Intel Corp. and AMD. "This policy will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers," Trump posted on Dec. 8.

The US formalizes 25% tariff on Nvidia H200 and AMD MI325X chips shipped to China

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. 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.

Trump imposes 25% tariff on Nvidia AI chips and others, citing national security

The order follows a nine-month investigation and includes broad exemptions for data centers and consumers Donald Trump on Wednesday imposed a 25% tariff on certain AI chips, such as the Nvidia H200 AI processor and a similar semiconductor from AMD called the MI325X, under a new national security order released by the White House. The proclamation follows a nine-month investigation under section 232 of the Trade Expansion Act of 1962 and targets a number of high-end semiconductors meeting certain performance benchmarks and devices containing them for import duties. The action is part of a broader effort to create incentives for chipmakers to produce more semiconductors in the US and decrease reliance on chip manufacturers in places like Taiwan. "The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains," the proclamation said, adding that the reliance was a "significant economic and national security risk". The White House said in a fact sheet that the tariffs will be narrowly focused and will not apply to chips and derivative devices imported for US datacenters - a huge consumer of AI chips - startups, non-datacenter consumer applications, non-datacenter civil industrial applications and US public sector applications. Howard Lutnick, the US commerce secretary, has broad discretion to apply further exemptions, according to the proclamation. Shares of Nvidia, AMD and Qualcomm traded slightly lower in after-hours trading. Trump in December said he would slap tariffs on Chinese semiconductor imports over Beijing's "unreasonable" pursuit of chip industry dominance, but delayed the action until June 2027. That move followed a year-long "Section 301" unfair trade practices investigation into China's exports of "legacy," or older-technology chips to the US, launched by former President Joe Biden's administration. Questions had swirled around about the universe of products containing chips that would be ⁠hit by the tariffs, the tariff rates, and whether any countries, products or companies would be exempt. Wednesday's announcement, coupled with the news from December, suggests a light touch from the administration on chip imports, for now. Trump last year announced he would allow Nvidia to sell H200 chips to China in exchange for a cut of the sales of those chips. Legal experts questioned whether such an arrangement would violate the US constitution's ban on taxing exports. The Trump administration this week required that China-bound chips make a detour from Taiwan, where they are made, through the United States for testing by a third-party lab. When the chips enter the United States, they are subject to the 25% tariff announced Wednesday. Nvidia did not immediately respond to a request for comment. "We comply with all U.S. export control laws and policies," AMD said in a statement. Trump has deployed an ⁠array of tariffs aimed at bolstering ⁠US manufacturing, announcing in September sweeping new import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, triggering fresh trade uncertainty after a period of relative calm. In April, the Trump administration announced investigations into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on them, arguing that extensive reliance on their foreign production poses a national security threat. While US companies like Nvidia, AMD and Intel design many of the most widely used chips, most are made overseas, many by Taiwan Semiconductor Manufacturing Co. TSMC did not immediately respond to a request for comment and the Semiconductor Industry Association also could not immediately be reached. Trump, in the near future, may also impose broader tariffs on imports of semiconductors and their derivative products to incentivize domestic manufacturing, according to the fact sheet. An annex to the order clarifies that any 25% tariff imposed on semiconductors under the order would not be stacked on top of the other tariffs imposed by the Trump administration under other section 232 orders. They would be exempt from duties on copper, aluminum and steel, auto and truck parts.

Trump imposes 25% tariff on some semiconductors, including Nvidia chips

Why it matters: The tariffs are part of a broader deal, one in which the U.S. government will reap revenues from allowing Nvidia to sell AI processors in China. * Trump stopped short of imposing tariffs on most other foreign chips , though a White House fact sheet warned that the administration might decide to do so at a later date. What's inside: Trump "imposed a 25% tariff on certain advanced computing chips, such as the NVIDIA H200 and AMD MI325X," according to a fact sheet released on Wednesday, citing threats to national security. * The fact sheet notes that the tariff would not apply to chips that are imported to "support the buildout of the U.S. technology supply chain and the strengthening of domestic manufacturing capacity for derivatives of semiconductors." * In practice, it means that Nvidia will have to pay a 25% tariff on the H200 AI processors -- produced in Taiwan -- before the company sells them in China. What they're saying: Nvidia applauded the administration's decision to allow Department of Commerce-vetted H200 chips to go to approved commercial customers in China. * "The Administration's critics are unintentionally promoting the interests of foreign competitors on U.S. entity lists -- America should always want its industry to compete for vetted and approved commercial business, supporting real jobs for real Americans," an Nvidia spokesperson said in an email. The big picture: This is the next key step in Trump's decision to open up the Chinese market for Nvidia. * The Commerce Department's Bureau of Industry and Security on Tuesday revised its policy for licensing chip sales to China. * License applications for the Nvidia H200, the AMD MI325X and similar chips will be reviewed on a case-by-case basis provided certain security requirements are met, BIS said. * To qualify, companies have to show that exporting to China won't impact U.S. customer demand and that Chinese purchasers have gone through screenings. Tension point: Republicans on the Hill are looking to rein in Trump on chip sales to China, even as they avoid public criticism. * During a congressional hearing on Wednesday, Trump's former Asia advisor, Matt Pottinger, said that the administration was on the "wrong track" on its decision to allow chip sales to China, which he added would hurt the U.S. in the AI race. What to watch: Late last year, Trump warned he would slap "fairly substantial" tariffs on semiconductors, threatening levies as high as 100% at one point for companies that had not shifted production to the U.S.

Trump imposes 25% tariff on imports of some AI chips - The Economic Times

The proclamation follows a nine-month investigation under Section 232 of the Trade Expansion Act of 1962 and targets a number of high-end semiconductors meeting certain performance benchmarks and devices containing them for import duties.U.S. President Donald Trump on Wednesday imposed a 25% tariff on certain AI chips, such as the Nvidia H200 AI processor and a ⁠similar semiconductor from AMD called the MI325X, under a new national security order released by the White House. The proclamation follows a nine-month investigation under Section 232 of the Trade Expansion Act of 1962 and targets a number of high-end semiconductors meeting certain performance benchmarks and devices containing them for import duties. The action is part of a broader effort to create incentives for chipmakers to produce more semiconductors in the U.S. and decrease reliance on chip manufacturers in places like Taiwan. "The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains," the proclamation said, adding that the reliance was a "significant economic and national security risk." The White House said in a fact sheet that the tariffs will be narrowly focused and will not apply to chips and derivative devices imported for U.S. data centers - a huge consumer of AI chips - startups, non-data center consumer applications, non-data center civil industrial applications and U.S. public sector applications. Commerce Secretary Howard Lutnick has broad discretion to apply further exemptions, according to the proclamation. Shares of Nvidia, AMD and Qualcomm traded slightly lower in after-hours trading. Trump in December said he would slap tariffs on Chinese semiconductor imports over Beijing's "unreasonable" pursuit of chip industry dominance, but delayed the action until June 2027. That move followed a year-long "Section 301" unfair trade practices investigation into China's exports of "legacy," or older-technology chips to the U.S., launched by former President Joe Biden's administration. Questions had swirled around about the universe of products containing chips that would be hit by the tariffs, the tariff rates, and whether any countries, products, or companies would be exempt. Wednesday's announcement, coupled with the news from December, suggests a light touch from the administration on chip imports, for now. Trump last year announced he would allow Nvidia to sell H200 chips to China in exchange for a cut of the sales of those chips. Legal experts questioned whether such an arrangement would violate the U.S. Constitution's ban on taxing exports The Trump administration this week required that China-bound chips make a detour from Taiwan, where they are made, through the United States for testing by a third-party lab. When the chips enter the United States, they are subject to the 25% tariff announced Wednesday. Nvidia did not immediately respond to a request for comment. "We comply with all U.S. export control laws and policies," AMD said in a statement. Trump's tariff blitz Trump has deployed an array of tariffs aimed at bolstering American manufacturing, announcing in September sweeping new import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, triggering fresh trade uncertainty after a period of relative calm. In April, ⁠the Trump administration announced probes into imports of ⁠pharmaceuticals and semiconductors as part of a bid to impose tariffs on them, arguing that extensive reliance on their foreign production poses a national security threat. While U.S. companies like Nvidia, AMD and Intel design many of the most widely used chips, most are made overseas, many by Taiwan Semiconductor Manufacturing Co . TSMC did not immediately respond to a request for comment and the Semiconductor Industry Association also could not immediately be reached. Trump, in the near future, may also impose broader tariffs on imports of semiconductors and their derivative products to incentivize domestic manufacturing, according to the fact sheet. An annex to the order clarifies that any 25% tariff imposed on semiconductors under the order would not be stacked on top of the other tariffs imposed by the Trump administration under other Section 232 orders. They would be exempt from duties on copper, aluminum and steel, auto and truck parts.

Trump Targets Taiwan, China Supply Chains: President Slaps 25% Tariffs On Nvidia, AMD AI Chips Under National Security Order - Advanced Micro Devices (NASDAQ:AMD), NVIDIA (NASDAQ:NVDA)

On Wednesday, President Donald Trump imposed a 25% tariff on select high-end artificial intelligence chips from companies like Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD). Tariffs Target Advanced AI Chips After Lengthy Probe The White House said the tariffs apply to certain high-performance semiconductors, like Nvidia's H200 AI processor and AMD's MI325X, following a nine-month investigation under Section 232 of the Trade Expansion Act of 1962. The probe concluded that U.S. dependence on foreign-made chips poses economic and security risks. "The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains," the proclamation read, calling that reliance a "significant economic and national security risk." The move is aimed at encouraging chipmakers to expand domestic production and reduce reliance on manufacturing hubs such as Taiwan. In November 2025, it was reported that the Trump administration is pressing Taiwan to increase semiconductor investments in the U.S. and expand training programs for U.S. chipmaking workers. White House Emphasizes Narrow Scope, Key Exemptions In a fact sheet shared by the White House, it stressed the tariffs are narrowly targeted and will not disrupt the broader U.S. AI ecosystem. The duties will not apply to chips or devices imported for U.S. data centers, startups, non-data-center consumer products, civil industrial uses or public sector applications. Commerce Secretary Howard Lutnick has broad authority to grant additional exemptions, giving the administration flexibility in how the tariffs are applied. China Policy Adds Another Layer Of Complexity The announcement follows Trump's December pledge to impose tariffs on Chinese semiconductor imports over Beijing's "unreasonable" efforts to dominate the chip industry, though those measures were delayed until June 2027. The administration now also requires China-bound chips made in Taiwan to pass through the U.S. for third-party testing. Once they enter the U.S., they become subject to the new 25% tariff. Trump has also said he would allow Nvidia to sell certain advanced chips to China in exchange for a share of the proceeds, a proposal legal experts have questioned. Price Action: Nvidia shares fell 0.21% after hours and AMD slipped 0.20%, according to Benzinga Pro. Benzinga Edge Stock Rankings place Nvidia in the 94th percentile for growth and the 97th percentile for quality. Click here to compare its performance with peers such as AMD, TSMC and others. Photo: dee karen / Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMDAdvanced Micro Devices Inc$223.15-0.20%OverviewNVDANVIDIA Corp$182.75-0.21%Market News and Data brought to you by Benzinga APIs

Korea gauges impact of Trump's 25% chip tariff order - The Korea Times

President Donald Trump speaks during a bill signing ceremony in the Oval Office at the White House in Washington, Wednesday (local time). UPI-Yonhap U.S. President Donald Trump on Wednesday (local time) enacted a new 25 percent tariff on certain advanced chips, including Nvidia's H200 artificial intelligence (AI) accelerators, introducing greater uncertainties across the entire semiconductor supply chain. Semiconductor companies in Korea are scrambling to assess their exposure across global supply chains in the wake of the move. Many memory chips bound for Nvidia are first shipped to third countries for integration into finished products before being exported to the United States, limiting immediate impact on Korean firms. However, higher costs are often passed down the supply chain, and Trump has also warned of broader tariffs, forcing companies to navigate fresh uncertainties. According to Trump's proclamation and a White House fact sheet, the president imposed a 25 percent tariff on advanced computing chips such as the Nvidia's H200 and AMD MI325X. The fact sheet noted, "This tariff will not apply to chips that are imported to support the buildout of the U.S. technology supply chain and the strengthening of domestic manufacturing capacity for derivatives of semiconductors." This means that the H200 and other chips, which were manufactured in Taiwan, shipped to the United States and then re-exported to China, will be subject to the tariff. The White House fact sheet also warned that Trump in the near future "may impose broader tariffs on imports of semiconductors and their derivative products." The proclamation was widely interpreted to be aimed at allowing H200's sales to China on condition of a 25 percent tariff, but is feared to have impacts on Korean memory makers as well, because the cited AI accelerators use high-bandwidth memory 3E (HBM3E) manufactured by SK hynix and Samsung Electronics. Industry officials said memory suppliers have little visibility into or control over the final export destination of the memory chips they ship, suggesting the direct impact would be limited. "In the first place, only a very small share of memory chips produced by Korean companies is exported directly to the U.S," an industry official said. "In most cases, the chips go through original equipment manufacturers in countries such as Taiwan before entering the U.S. After that, it is not really something memory suppliers can control but an issue that needs to be handled by chipset makers (like Nvidia)." The U.S. assurance of most favored nation status on Korean chip exports also suggests the direct impact could be limited. During a trade agreement reached between Trump and President Lee Jae Myung in November last year, Seoul was assured it would not be treated less favorably than other countries on Washington's chip tariffs. The problem, however, is that higher tariffs on companies such as Nvidia are likely to ripple through the supply chain, with makers of finished products seeking to pass the increased burden on to component suppliers. For now, U.S.-based Micron could be affected by the tariff policy because its manufacturing bases are spread around the world. However, since the tariffs are designed to support the U.S. semiconductor industry, there are concerns that the market could be reshaped in a way that ultimately favors Micron over the longer term. "The situation is highly unpredictable," a second industry official said. "You may expect the cost to be passed through the supply chain, but it may not happen given that memory suppliers are currently in a position to dictate terms in price negotiations. "Adding more uncertainty is that Trump has threatened additional tariffs, and there have been multiple precedents of the Trump administration's tariff policies flip-flopping, making it difficult to gauge their impact on the domestic semiconductor industry immediately." Against this backdrop, Trade Minister Yeo Han-koo, who had been set to return home after a weeklong trip to the U.S., decided to extend his stay to examine the potential domestic impact caused by the chip proclamation. The Ministry of Trade, Industry and Resources also held an emergency meeting to assess the proclamation's impact. The ministry said it will make "all-out" efforts to minimize the impact of the latest U.S. move on Korea while maintaining communication with affected industries.