STORY: :: File
U.S. President Donald Trump on Wednesday imposed a 25% tariff on certain AI chips under a new national security order.
Affected products include Nvidia's H200 and a rival semiconductor from AMD.
The proclamation says "the United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains."
It says such reliance is a "significant economic and national security risk."
The move follows a nine-month investigation.
It targets a number of high-end semiconductors meeting certain performance benchmarks and devices containing them.
But it exempts chips bound for new data centers.
Shares in Nvidia, AMD and Qualcomm edged lower in after-hours trading following the news.
The Trump administration this week required that China-bound Nvidia H200 chips make a detour to the U.S. from Taiwan, where they are made, for testing by a third-party lab.
:: Nvidia
When the chips enter the U.S., they are subject to the new 25% levy.
On Thursday, Taiwan signaled it was close to a deal with the U.S. on tariffs on its goods.
Taiwan has been in talks with the U.S. to get the levies on its exports cut from 20% to 15%.
Two Reuters sources said an announcement on a deal could come by the end of the month.
