Trump Imposes 25% Tariff on Certain AI Chips for National Security

National Security Order on AI Chips

• 🇺🇸 President Donald Trump has enacted a 25% tariff on specific AI chips under a new national security order.
• 🎯 The order targets high-end semiconductors, including Nvidia H200 and rival chips from AMD, that meet certain performance benchmarks.
• ⚠️ The White House cites a significant economic and national security risk due to the US manufacturing only about 10% of its required chips, leading to heavy reliance on foreign supply chains.

Impact on Chip Supply Chains

• 📦 The new tariff applies to chips bound for new data centers and requires China-bound Nvidia H200 chips to detour through the US for testing.
• 📉 Shares of major chip companies like Nvidia, AMD, and Qualcomm saw a slight decrease in after-hours trading following the announcement.

Taiwan Trade Negotiations

• 🤝 Taiwan is reportedly close to a deal with the US to reduce tariffs on its goods, with talks aiming to cut levies from 20% to 15%.
• 🗓️ An announcement regarding the US-Taiwan tariff deal could be made by the end of the month.