The Trump administration formalized its 25% cut of H200 chip sales in China with a tariff that applies to certain semiconductors.

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The Trump administration has imposed a 25% tariff on advanced AI semiconductors produced outside the US that pass through the country before export. This affects Nvidia's H200 and AMD's MI325X chips destined for China, formalizing December's approval for vetted Chinese customers to purchase these chips. Despite the tariff, Nvidia supports the decision as it allows competition while maintaining export controls. China is reportedly drafting rules on how many foreign semiconductors domestic companies can purchase, balancing the need to boost domestic chip production while staying competitive in AI development.

The US imposes 25% tariff on Nvidia’s H200 AI chips headed to China