US imposes tariffs: Nvidia's H200 among AI chips facing 25% duties on China exports

After months of what the rumour mills speculated about, the Trump administration has imposed a 25% tariff on certain semiconductors, specifically targeting Nvidia’s advanced H200 AI chips destined for China.

The tariff was approved in a proclamation signed by US President Donald Trump, which applies to advanced AI semiconductors produced outside the U.S. that pass through American territory before being exported to China.

It was reported that the implementation of such a massive tax is consistent with the U.S. Department of Commerce's previous approval for Nvidia to begin shipping its H200 chips to vetted customers in China starting December 2025.

The tariff also affected advanced chips from other manufacturers, including AMD’s MI325X.

Notwithstanding the tariff, Nvidia expressed support for the move, highlighting its ability to sell the H200 to approved customers.

“We applaud President Trump’s decision to allow America’s chip industry to compete to support high-paying jobs and manufacturing in America. Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America,” an Nvidia spokesperson stated.

The possibility of sales receiving a devastating blow is negligible, given that demand for the H200 semiconductors is significant, compelling Nvidia to consider increasing production due to a surge in early orders from Chinese firms.

What's not aligned with this development is the Chinese government’s regulations on semiconductor imports, which are expected to play a crucial role in shaping this market.

This is extremely imperative as China is accelerating its domestic semiconductor industry while keeping pace with international competitors, and is reportedly drafting guidelines on semiconductor imports.