Business & Economics
U.S. Invokes Section 232 to Levy 25 % Duty on Nvidia H200 and AMD MI325X AI Chips
On 15 Jan 2026, President Trump ordered a new 25 % import tariff on two specific high-performance AI chips slated for re-export, after a nine-month national-security probe under Section 232.
Focusing Facts
- The Section 232 investigation, begun April 2025, concluded foreign-made chips supply 90 % of U.S. demand, classifying this as a national-security risk.
- Tariff scope is limited to Nvidia H200 and AMD MI325X processors (and devices containing them) unless the chips are destined for U.S. data centers, startups, consumer, or public-sector use.
- China-bound H200 shipments must now detour through the U.S. for third-party testing, paying the 25 % duty, with sales capped at 50 % of U.S. customer volumes.
Context
Washington last invoked Section 232 this aggressively in 2018 for steel and aluminium; before that, the 1986 U.S.–Japan semiconductor accord similarly used trade pressure to on-shore chip capacity. Today’s move fits a decades-long arc of techno-nationalism and supply-chain securitisation accelerated by the 2020–21 pandemic, CHIPS Act 2022, and rising U.S.–China strategic rivalry. By taxing rather than banning exports, the administration experiments with a revenue-sharing model reminiscent of Britain’s Navigation Acts (1651) that taxed colonial trade to fund domestic shipbuilding. If the tariff widens, it could redraw manufacturing geographies much like the 1930 Smoot-Hawley duties shifted global agricultural flows—yet it may also simply nudge firms to re-route, delaying but not reversing Asia’s fabrication dominance. Whether this is a pivotal inflection or a footnote will hinge on follow-on tariffs and the still-uncertain build-out of U.S. fabs over the next decade; on a century scale, it illustrates how great powers periodically weaponise chokepoint technologies when industrial leadership feels at risk.
Perspectives
Business and industry trade press
e.g., RTTNews, Intelligent CIO, AzerNews — Portrays the 25 % chip tariff as a justified national-security safeguard meant to rebuild U.S. semiconductor capacity and reduce risky foreign dependence. By largely echoing the White House fact-sheet language, these outlets gloss over possible cost increases, retaliation, or supply-chain disruption that could undermine the very industries they say the tariff protects.
Progressive and tech-focused media
e.g., The Guardian, Engadget, Blockonomi — Frames the tariff as a politically driven move that injects fresh trade uncertainty, may undermine America’s AI edge, and lets the government skim 25 % of chip sales while granting broad carve-outs. By spotlighting legal challenges, market jitters, and critics on Capitol Hill, these stories can underplay national-security findings and accentuate controversy to fit a skeptical stance toward Trump’s trade agenda.
International economic press watching U.S. policy
e.g., Cryptopolitan, Outlook Business — Sees the tariff primarily as a source of looming uncertainty for Asian and other foreign chipmakers, noting that immediate impact is muted but broader duties could hurt investment and currency stability. Their coverage stresses risks to their home-region industries and financing deals, potentially magnifying downside scenarios to pressure Washington for softer rules while skimming over U.S. strategic motives.