Trump Imposes Tariff to Protect U.S. Semiconductor Industry

President Trump has announced a 25% tariff on certain advanced computing chips, aiming to safeguard national security. The measure exempts chips crucial for the U.S. technology supply chain and domestic semiconductor manufacturing, and there may be similar future actions to further encourage local production.

President Donald Trump signed a proclamation on Wednesday addressing national security concerns through a new 25% tariff on specific high-tech semiconductors like the Nvidia H200 and AMD MI325X. This strategic move targets certain imports to bolster domestic manufacturing and protect U.S. interests as revealed in a White House fact sheet.

Crucially, the newly imposed tariff will not affect chips imported for use in the U.S. technology supply chain or those contributing to domestic manufacturing of semiconductors. This exemption underscores the administration's dual focus on national security and economic growth in the tech sector.

Furthermore, the fact sheet indicates the possibility of broader tariffs on semiconductor imports to further incentivize domestic production. Such measures align with a broader strategy to strengthen the nation's self-sufficiency in critical technological components.

(With inputs from agencies.)