Trump slaps 25% tariff on some AI chip imports

Donald Trump imposed a 25% tariff on certain high-end AI chips, citing national security risks.

Transcript

00:00The Trump administration has imposed a 25% tariff on certain high-end AI chips

00:05under a new national security order.

00:08This includes NVIDIA's H200 processor and AMD's MI325X.

00:15Chips brought in to support U.S. technology supply chains, however, will be exempt.

00:21The White House says the U.S. currently makes only about 10% of the chips it needs,

00:26calling the reliance on foreign suppliers a significant economic and national security risk.

00:32The tariffs are linked to an agreement by Trump,

00:34allowing NVIDIA to sell its advanced H200AI processors to China.

00:39This week, Washington said required chips destined for China will be routed through the U.S.

00:45for testing by an independent third-party lab,

00:47rather than being shipped directly from Taiwan, where they are manufactured.

00:51Once the chips enter the U.S., they become subject to the 25% tariff.

00:57NVIDIA designs the chips, but relies on Taiwan Semiconductor Manufacturing to produce them,

01:02including the H200 model.

01:04Shares in NVIDIA, AMD and Qualcomm edge slightly lower

01:08in after-hours trading following the announcement.