US Tariffs Target Nvidia, AMD Chips in New Blow to China's AI

Chinese companies will face significantly higher costs to use advanced U.S. artificial intelligence (AI) chips, analysts say. This follows a new 25% tariff imposed by Washington. The Trump administration announced the import duty on Wednesday. It specifically targets high-performance semiconductors used for AI. The tariffs apply to Nvidia's H200 and AMD's MI325X graphics processing units (GPUs). These chips are essential for training and running complex AI systems. Equivalent and derivative products are also covered. Analysts state the direct result will be increased expenses for Chinese firms. These companies rely on these advanced U.S. chips to develop AI technology. The move is the latest U.S. action to restrict China's access to cutting-edge semiconductor technology. It places another financial barrier on China's pursuit of AI capabilities.