White House Slaps 25% Tariffs on Re-Exported AI Chips

The Trump administration has imposed 25% tariffs on certain advanced artificial intelligence semiconductors that are imported into the U.S. and then re-exported to other countries.

The Guardian reports that the new tariffs took effect on January 15, and cover AI chips made overseas by American companies such as Nvidia and AMD. The move comes in the wake of a nine-month investigation that was aimed at pressing tech companies and chipmakers into buying American-made semiconductors. In a January 14 release, the White House noted that the levies do not apply to chips and related devices that are imported for U.S. data centers, startups, consumer products, or U.S. public sector applications, although broader tariffs on semiconductor imports could still be implemented sometime down the line.

“The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains,” the proclamation issued by President Trump reads. “This dependence on foreign supply chains is a significant economic and national security risk.”

The 25% tariff rate and the relatively limited scope are a substantial step down from Trump’s initial threats in August 2025 to impose 100% tariffs on foreign semiconductors. The levies also still allow the U.S. government to take a 25% cut of Nvidia’s sales of AI processors in China, which are permitted as long as Chinese customers can prove they have adequate security procedures in place, and aren’t using the chips for military purposes.