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The United States Commerce Department’s decision to impose a 25% national security tariff on certain high-end semiconductors is only the “phase one” step, a White House official said.According to a report by news agency Reuters, the move, announced earlier this week is being described as a “phase one” action aimed at protecting the US semiconductor sector.Speaking on condition of anonymity, the official said further announcements could follow after talks with other countries and companies. The comments suggest that the tariff policy may expand depending on how negotiations progress.
Trump previously threatened of 100% tariff on chips that are not made in the US
The report said the tariff is part of broader efforts by President Donald Trump to strengthen domestic chip manufacturing.The official noted that Trump has earlier warned of much higher duties (up to 100%) on chips produced outside the United States. In previous statements, Trump had said tariffs could go as high as 100% on semiconductors that are not made in the U.S.The administration has repeatedly said that semiconductors are a matter of national security, given their role in defence systems, artificial intelligence, consumer electronics and industrial equipment.The new tariff applies to selected high-end chips, though details on affected products and companies were not immediately disclosed.Reuters reported that the White House sees the current tariff as an opening measure rather than a final decision. Any additional steps would depend on discussions with trade partners and industry players.
Trump govt wants 25% ‘cut’ on the sale of Nvidia AI chips
In a recent news, Trump announced that his administration will now allow Nvidia’s H200 AI chips to be sold to China, but only under strict conditions including a 25% government cut on sales and export caps designed to protect US supply.For those unaware, H200 is part of Nvidia’s Hopper generation which is a hit-performance chip sold in the US and other global makers. Unlike the earlier H20 chip, which was specifically slowed down for export, the H200 is not a China-only design.Trump has acknowledged that the H200 has already surpassed by Nvidia’s newer Blackwell and Rubin chips, but said the US would still benefit financially, “It’s not the highest level, but it’s a pretty good level, and China wants them and other people want them — and we’re going to be making 25% on the sale of those chips, basically.”
