The US imposes 25% tariff on Nvidia’s H200 AI chips headed to China

The U.S. government, under President Donald Trump, has imposed a 25% tariff on certain advanced AI semiconductors, including Nvidia’s H200 chips, when these are produced outside the U.S., pass through the U.S., and are then exported to countries like China. This tariff formalizes a key aspect of the Department of Commerce’s earlier decision to allow Nvidia to sell these chips to vetted Chinese customers starting in December. The tariff also affects chips from other companies, such as AMD’s MI325X. Despite the tariff, Nvidia welcomed the move, emphasizing that it enables American chip manufacturers to compete globally while supporting domestic jobs and manufacturing. China faces a complex situation in the global AI and semiconductor race, balancing its desire to develop a robust domestic chip industry with the need to access advanced foreign technology in the interim. The Chinese government is reportedly drafting regulations to control how many semiconductors Chinese companies can import, potentially allowing some purchases of Nvidia’s chips, which would mark a shift from previous