U.S. President Donald Trump approved on Wednesday to impose a 25% tariff on a limited list of foreign semiconductors, a measure aimed at taxing the sale of chips used in artificial intelligence (AI). According to a document published by the White House, the 25% tariff will apply to AI chips manufactured by companies like Nvidia and AMD that are imported into the U.S. and subsequently re-exported to other countries, a formula that will allow the government to generate revenue from the sale of these products in markets like China. The tariff, which will take effect on Thursday, is less extensive than what the Republican had previously warned, although last year the Administration opened an investigation to encourage the purchase of semiconductors made in the United States, it ultimately opted to apply reduced tariffs rather than imposing broad tariffs on the entire industry. The measure will not affect semiconductors imported for use in data centers or in products intended for U.S. consumers, industries, or government agencies, with the aim of avoiding a direct impact on the economy and domestic technological development. However, the White House warned that the president could still announce broader tariffs on semiconductors and products that incorporate them in the short term, as well as a program that would offer tariff relief to companies that manufacture chips within the country.
Trump imposes 25% tariff on certain foreign semiconductors
U.S. President Donald Trump approved a 25% tariff on a limited list of foreign semiconductors used for AI, aiming to generate revenue from re-exporting chips to markets like China.