Trump Imposes 25% AI Chip Tariff on Nvidia H200 Exports to China

A 25% tax just landed on the world's most powerful AI chips. President Donald Trump has formalized a new trade barrier that reshapes the silicon landscape, even as he clears a path for limited exports to China.

The Trump 25% AI Chip Tariff: A Calculated Trade Barrier

On Wednesday, January 14, 2026, the administration signed a proclamation mandating a 25% tariff on advanced AI semiconductors produced outside the U.S. that pass through American ports for export. The order specifically targets high-end hardware like Nvidia's H200 and AMD's MI325X. This move formalizes the Commerce Department's framework to allow restricted sales to vetted Chinese customers.

Despite the steep levy, Nvidia hasn't voiced opposition. Instead, the company applauded the decision, stating it "strikes a thoughtful balance" by allowing American industry to compete while supporting domestic manufacturing. It's a pragmatic stance for a company facing immense demand from Chinese firms rushing to secure early orders.

China's Strategic Pivot and Supply Chain Security

The administration justified the move by citing a critical vulnerability: the U.S. currently manufactures only about 10% of the chips it needs. "This dependence on foreign supply chains is a significant economic and national security risk," the proclamation stated. Meanwhile, China is reportedly drafting its own rules to regulate how many foreign chips domestic companies can purchase, according to Nikkei Asia, signaling a potential softening of its previous hostility toward chip imports.