US Imposes 25% Tariff on Select AI Chips, Allows Limited Nvidia Sales to China

The US government, under President Donald Trump, has imposed a 25% tariff on select advanced AI chips, including Nvidia's H200 and AMD's MI325X, citing national security concerns and aiming to boost domestic semiconductor manufacturing. While the tariffs apply to specific high-end chips exported to China, exemptions exist for US data centers, startups, and public-sector uses. The administration also approved limited Nvidia chip sales to China under strict conditions, sparking debate over potential risks to US technological and military advantages.