Trump Imposes 25% Tariff on AI Chips, Offers Relief to China

• The Trump administration has levied a 25% tariff on advanced computing chips, including Nvidia's H200 and AMD's MI325X, to boost domestic production and national security.
• The tariffs aim to reduce US reliance on foreign chip manufacturing, as only 10% of America's chip needs are produced domestically.
• Nvidia has received approval to resume sales of some selected chips in China, which were previously blocked, under specific conditions.
• The 25% tariff applies only to certain high-end chips, with warnings that the scope could expand to promote domestic manufacturing.
• Exemptions apply to chips imported for US data centers, startups, consumer applications, civil industrial usages, and those supporting the US tech supply chain.

Why It Matters: Trump imposes 25% tariff on AI chips for domestic boost, while allowing conditional sales to China.