Overview
- Following a nine-month Section 232 probe, the tariff targets high-end processors such as Nvidia’s H200 and AMD’s MI325X made abroad and routed through the U.S. for export, with China-bound shipments required to undergo third‑party testing in the United States.
- The order carves out chips used for U.S. data centers, startups, consumer devices outside data centers, civil‑industrial uses, and public‑sector applications, with the Commerce Secretary empowered to grant additional exemptions.
- Officials described the 25% duty as a phase‑one measure and directed negotiators to pursue further agreements, leaving open broader or higher semiconductor tariffs depending on talks with partners and chipmakers.
- Washington announced a parallel U.S.–Taiwan deal under which Taiwanese tech firms will invest at least $250 billion in U.S. semiconductor and AI capacity, backed by $250 billion in credit guarantees, as the U.S. trims most tariffs on Taiwanese goods to 15% and offers preferential import allowances tied to new U.S. fabs.
- Nvidia publicly welcomed the calibrated approach allowing vetted H200 sales, while analysts said the tariff and U.S. testing requirement will raise costs for Chinese buyers and steer more production and investment toward U.S. facilities.