US President Donald Trump on Wednesday imposed a 25% tariff on certain AI chips, such as Nvidia’s H200 AI processor and a similar semiconductor from AMD, the MI325X, under a new national security order released by the White House, as Reuters reported. The proclamation follows a nine-month investigation under Section 232 of the Trade Expansion Act of 1962 and targets many of the high-end semiconductors meeting specific performance benchmarks, as well as devices containing them, for import duties. The action is part of a broader effort to create incentives for chipmakers to produce more semiconductors in the US and reduce reliance on manufacturers in places like Taiwan. “The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains,” the proclamation said, adding that this reliance poses a “significant economic and national security risk.”