President Donald J. Trump Takes Action on Certain Advanced Computing Chips to Protect U.S. Economic & National Security.

The White House has announced significant new trade measures targeting advanced computing chips, citing urgent national security concerns tied to U.S. dependence on foreign semiconductor supply chains. These actions taken under Section 232 of the Trade Expansion Act of 1962 introduce new duties and signal the potential for broader semiconductor-related restrictions in the near term.

Summary of Presidential Action

On January 14, 2026, President Trump signed a Section 232 Proclamation addressing threats posed by imports of semiconductors, semiconductor manufacturing equipment, and derivative products. Key measures include:

A 25% Tariff on Certain Advanced Computing Chips

The administration has imposed a 25% tariff on select high-performance AI and advanced computing chips, including:

• NVIDIA H200
• AMD MI325X

These products were specifically identified as contributing to national security vulnerabilities due to heavy import reliance.

Exemptions for Domestic Supply Chain Buildout

The tariff does not apply to chips imported to support the buildout of U.S. technology supply chains or expand domestic semiconductor manufacturing capacity.

Potential for Broader Tariffs Ahead

The White House has stated that additional and more expansive tariffs on semiconductors and derivative products remain under consideration, alongside a proposed tariff offset incentive program to strengthen domestic production.

National Security Basis for the Action

The Section 232 investigation concluded that:

• U.S. domestic production capacity for semiconductors and key manufacturing equipment (e.g., advanced lithography, etching tools) is insufficient to meet demand.
• This has created strategic dependency on foreign suppliers, exposing U.S. supply chains—including those supporting defense, critical infrastructure, and AI innovation—to geopolitical and economic risk.

The report emphasized that semiconductors underpin U.S. military readiness and all 16 critical infrastructure sectors, increasing the urgency for supply chain realignment.

Key Implications for Industry

Increased Costs for Certain AI/High-Performance Chips

Importers of the NVIDIA H200, AMD MI325X, and potentially other advanced chips should anticipate immediate duty exposure at 25%.

Supply Chain Planning & Country of Origin Strategies

Companies should assess:

• Origin-based tariff exposure
• Contract manufacturing and sourcing diversification
• Whether current imports qualify under the domestic capacity exemption

Potential for Future Expansion of Controls

The White House signaled that broader semiconductor-related tariffs—including on downstream products—remain a near-term possibility. Importers of semiconductor-containing equipment, assemblies, and derivative products should prepare for expanded duty liability.

Strategic Opportunity for Onshoring

The administration intends to incentivize U.S. semiconductor investment. Companies expanding U.S. fab or packaging capacity may benefit from future incentive programs and tariff offset mechanisms.

Recommended Next Steps for Clients

Conduct a Tariff Exposure Assessment

• Identify HTS classifications and confirm whether affected chips are within your supply chain.
• Review existing contracts for tariff sharing provisions.

Model Cost Impacts & Mitigation Options

• Evaluate duty-avoiding supply chain redesigns.
• Explore U.S. production or tariff-exempt import pathways.

Monitor for Additional Semiconductor Tariffs

• Broader measures may be announced imminently; early readiness is essential.

Review Export Control Interactions

• Ensure alignment with evolving U.S. semiconductor export rules, particularly for AI-related technologies.

How We Can Help

As your trusted trade advisory partner, we can assist with:

• Section 232 compliance assessments
• HTS classification reviews
• Tariff impact modeling and scenario planning
• Duty mitigation strategy development

Don’t wait for additional tariffs to take effect. Reach out today for a comprehensive Section 232 impact assessment and actionable strategies to protect your operations. Tariff Response Unit.