The United States has implemented a 25 per cent tariff on specific semiconductor imports, a decision linked to an agreement approved by former President Donald Trump. This agreement permits Nvidia to export its Taiwan-manufactured H200 artificial intelligence processors to China. Nvidia is a technology company known for its graphics processing units (GPUs) and other advanced technologies. It designs and manufactures products for gaming, professional visualisation, data centres, and automotive markets.
Under the order signed by Trump, the US government will collect the duty on these chips as they pass through the country before being shipped to Chinese customers and other international markets. Nvidia depends on Taiwan Semiconductor Manufacturing Co to produce its designed chips, including the H200, which Trump cleared for sale to China in December. According to Trump, “We’re going to be making 25 per cent of the sale of those chips, basically.”
The full directive’s text was not immediately accessible, leaving open the possibility that the scope could extend to chips beyond the H200. Trump signed the measure following the Commerce Department’s Bureau of Industry and Security (BIS) easing its criteria for export licenses for H200 chips to China. While not naming Nvidia directly, Trump referenced two of its platforms, Blackwell and Rubin, noting their high quality and desirability.
White House staff secretary Will Scharf clarified that the duty would apply to chips “transshipped through the United States to other foreign countries,” excluding those for domestic use. This surcharge was a condition set by Trump for allowing Nvidia to sell in China. Before Nvidia can export the chips to China, further actions are required by the US, including the approval of export licenses by BIS, a process that could potentially take weeks or months.
