The US government has introduced a 25 percent export tariff on a "very narrow" category of semiconductors that are important to the government’s technology policies, including Nvidia H200 and AMD MI325X GPUs.

In a proclamation published on the White House website on January 14, President Donald Trump said the tariffs were part of a “two-phase plan of action” and broader tariffs on semiconductors would be introduced at a later date – once trade negotiations have concluded.

Tariffs will not apply when the chips are imported to support the buildout of the United States technology supply chain, the proclamation noted. This includes any chips that will be used in US-based data centers, non-data center consumer, civil industrial, and public sector applications, repairs and replacements, and R&D programs involving the use of the designated chips.

Commerce Secretary Howard Lutnick will report back to President Trump in 90 days, after which time the conditions outlined could be further adjusted. The 25 percent export tariff went into force at 12.01 am on Thursday, January 15.

The Trump administration first granted permission for Nvidia and AMD to export the aforementioned chips to “approved customers” in China and other countries under certain conditions in early December, ultimately formalizing the approval earlier this week.

However, the newly introduced rule comes with a number of provisions that had not been previously announced by the government, and does not permit the export of more powerful chips from the companies.

Under the updated regulations, chips will be tested in third-party labs to verify their technical capabilities before being exported. Exports will also be approved on a case-by-case basis and will not be permitted unless there is “sufficient supply” of the GPUs in the US, with the total number of exports to be capped at less than 50 percent of US customer volume.

Chinese customers must also demonstrate "sufficient security procedures," and license applications will not be granted for military use cases.

Foreign supply chain dependency for chips poses “significant security risk”

In his statement, the President claimed that currently, the US consumes approximately 25 percent of the world’s semiconductors but only manufactures around 10 percent of the chips it requires at present, making the country “heavily reliant” on foreign supply chains.

“The United States’ capacity to produce semiconductors, certain semiconductor manufacturing equipment such as advanced lithography and etching tools, and their derivative products is insufficient to meet domestic demand,” the proclamation continued. “This has led the United States to be dependent on foreign sources to meet domestic demand for semiconductors,” a position which poses “a significant economic and national security risk.”

Following the tariff announcement, the US Department of Commerce announced it had signed a trade agreement with Taiwan that will see the Taiwanese technology companies commit to $250bn of private investment in the US, alongside an additional $250bn of government-backed credit guarantees.

As a result of the agreement, the US government will lower the reciprocal tariff rate applied to goods from Taiwan to no more than 15 percent.