Trump enacts 25% tariff on chips — with a caveat

In a significant move on Wednesday, President Donald Trump announced a 25% tariff on specific advanced computing chips, as detailed in a fact sheet released by the White House. This new tariff targets high-profile products, including Nvidia's H200 and AMD's MI325X chips. However, there is a crucial twist: chips imported to bolster the United States' technological supply chain will be exempt from these tariffs. The exact criteria for qualifying for this exemption remain unclear, prompting questions about the implementation of this policy. The White House has yet to respond to inquiries regarding the specifics of these exemptions. The announcement also included a warning that the president may soon introduce broader tariffs on semiconductor imports and their related products. Citing national security as a primary concern, Trump invoked Section 232 of the Trade Expansion Act of 1962, which empowers the president to impose tariffs on certain goods to safeguard national interests. As this situation develops, both AMD and Nvidia have not provided immediate comments on the impact of this tariff. The story is still unfolding and will be updated as more information becomes available.