On January 14, 2025, President Trump signed a proclamation entitled “Adjusting Imports of Semiconductors, Semiconductor Manufacturing Equipment, and Their Derivative Products into the United States.” The proclamation imposes a 25% tariff under Section 232 on certain advanced computing chips that meet the technical specifications detailed in Annex I of the proclamation. The measure specifically targets high-performance processors, such as Nvidia’s H200 AI chip and AMD’s MI325X.
Several important exemptions apply to these tariffs. Exemptions include chips imported for use in U.S. data centers, for repairs or replacements within the United States, for domestic research and development, for startups, for non-data center consumer applications, for non-data center civil industrial uses, for U.S. public sector applications, or for any other uses that the Secretary determines will strengthen the U.S. technology supply chain or domestic manufacturing capacity. The relevant HTSUS codes for claiming these exemptions and further guidance on the proclamation were published in CSMS #67400472 issued the same day by CBP.
Looking ahead, a White House fact sheet indicated that additional tariffs on other semiconductor products could be introduced in the coming months. The proclamation directs the Secretary of Commerce and the U.S. Trade Representative to negotiate with countries that produce semiconductors and related equipment. If these negotiations do not result in agreements to boost U.S. manufacturing in these sectors, the Secretary of Commerce may recommend broader tariffs on semiconductors at a significant duty rate. The Secretary may also propose a tariff offset program to grant preferential tariff treatment to companies investing in U.S. semiconductor production and supply chain components. According to the proclamation, these negotiations and any resulting agreements must be concluded within 180 days.
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