Trump Imposes 25% Tariff on Advanced AI Chips, Allows Limited Nvidia Sales to China

• US President Donald Trump imposed a 25% tariff on advanced computing chips, including Nvidia's H200 and AMD's MI325X, to reduce reliance on foreign manufacturing.
• The tariff allows Nvidia to resume limited, Commerce Department-approved chip sales to China, generating revenue for the US government.
• The decision is driven by national security concerns and aims to incentivize domestic semiconductor production, as the US currently manufactures only 10% of its required chips.
• The tariff is narrowly focused on specific high-end chips, but the administration warned that broader tariffs on semiconductors could follow.
• Nvidia welcomed the move, stating it allows US industry to compete for vetted commercial business while supporting American jobs.

Why It Matters: Trump's new 25% tariff on advanced AI chips aims to boost US domestic production while allowing limited, regulated sales to China.