The United States has imposed a 25% import tariff on several advanced AI semiconductor chips, including Nvidia's H200 chip manufactured in Taiwan by TSMC. NVIDIA is a technology company that makes high-performance GPUs and is now a major player in global AI development.
The move is part of a deal approved by President Donald Trump that allows Nvidia to sell the chips to China but with the US government getting a 'share' in taxes.
Under the new rules, the chips will be taxed when they are brought into the US before being shipped back to China or other countries.
Trump said the move was fair because China and other countries desperately need the chips.
For now, the tariffs only apply to a very limited category of chips, including the Nvidia H200 and certain AI chips from AMD.
Chips used to build the US technology supply chain are exempt from the tax.
The decision is seen as a victory for Nvidia, which previously faced strict restrictions on selling AI chips to China.
Nvidia CEO Jensen Huang reportedly supports this approach because blanket restrictions would only encourage China to develop its own technology.
At the same time, Taiwan is negotiating with the US to lower overall tariffs to 15% and expand TSMC's investment in America.
