The Trump administration has extended a longstanding tariff exemption on Chinese-made semiconductor chips, delaying a 25% import tax originally set to resume June 1. The Office of U.S. Trade Representative Jamieson Greer announced the extension would last through August 31.
The exemption covers key technologies such as graphics processing units (GPUs), which are central to the artificial intelligence (AI) boom. First enacted in 2019 under Trump’s initial term, the tariff has remained on hold to avoid disrupting tech supply chains.
Though Trump has expanded “reciprocal” tariffs in his second term, semiconductors have remained exempt. A White House investigation launched in April under Section 232 could pave the way for new chip-specific import taxes on national security grounds.
Companies such as Nvidia, which relies on international production, are adjusting. Nvidia is now manufacturing some advanced chips in Arizona and plans to invest $500 billion in U.S. AI infrastructure over the next four years.
The administration has not committed to whether tariffs will be imposed after August.
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