On Wednesday President Donald Trump announced a 25% tariff on select imported semiconductors. He said the move aims to boost U.S. chip production and reduce reliance on foreign suppliers like Taiwan.
The proclamation targets advanced computing chips from firms including NVIDIA and AMD. Officials framed the policy as a national security response to supply-chain risks.
The announcement follows controversy over a decision to allow sales of NVIDIA‘s H200 chips to China. Lawmakers from both parties said the sale could help Beijing narrow the U.S. lead in artificial intelligence.
“The [Commerce] Secretary found that the United States’ capacity to manufacture semiconductors is too low to meet projected national defence needs and to match the requirements of a growing commercial industry,” the White House said. (Ed. note: The White House estimates U.S. production at about 10 percent of needed chips.)
“The United States currently fully manufactures only approximately 10 percent 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 added.
The tariffs apply to chips imported to the U.S. that are not used domestically for AI but are then exported elsewhere. The order covers a “very narrow category of semiconductors that are an important element of my Administration’s AI and technology policies,” and the White House said broader tariffs could follow.
NVIDIA stock fell just over 1% at the close and another 0.5% after hours. AMD also slipped, while Intel rose about 3%, extending a 153% rally since January 2025.
