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The U.S. government and President Donald Trump have announced new tariffs on the import of semiconductor equipment, specifically Advanced Micro Devices’ (AMD) MI325X chips and Nvidia’s (NVDA) H200 chips. The 25% tariffs are expected to encourage local manufacturing of semiconductor equipment and reduce reliance on foreign vendors. The administration has not ruled out future tariffs for the achievement of these objectives.
It is worth noting that startups, domestic data centers, the public sector, and chips needed to improve local manufacturing capacity are exempt from these tariffs. At the same time, the government has also allowed Nvidia to export its H200 chips to China. However, just a week ago, Chinese authorities had asked local companies to stop importing H200 chips from Nvidia. It seems China is equally reluctant to use U.S. technology, which raises concerns around both Nvidia and AMD’s China business.
