US Sets 25% Tariff on Key AI Chips to Bolster Domestic Chip Manufacturing

President Trump used Section 232 to declare that imports of semiconductors, semiconductor manufacturing equipment, and derivatives threaten U.S. national security and economic stability, citing insufficient domestic production. He announced an immediate 25% ad valorem tariff on a defined set of advanced computing chips (the Annex) with exemptions for data centers, R&D, startups, repairs, and other uses that support building U.S. capacity. A two-phase plan directs ongoing negotiations with foreign partners and potential broader tariffs later, plus a tariff-offset program to incentivize domestic production. The Secretary of Commerce and the USTR must report within 90 days on negotiations, monitor imports, and update the President on market conditions; the tariff takes effect Jan 15, 2026 and may be adjusted or terminated as needed.