Trump Approves Nvidia H200 Sales to China Amidst 25% Surcharge

## Trump Administration Greenlights Nvidia H200 Chip Sales to China, Imposes 25% Tariff

**Washington D.C.** – The Trump administration has signaled its approval for China to purchase Nvidia’s H200 artificial intelligence chips, a move that could significantly impact the global AI landscape. In a statement released Wednesday, President Donald Trump announced that while sales would be permitted, the U.S. government would levy a substantial 25% tariff on these transactions.

This decision comes just a day after the formal publication of new regulations by the U.S. government concerning advanced computing chips. Unlike the H20, a previously modified chip designed for export to China, the H200 is a direct variant of Nvidia’s high-performance Hopper generation, also sold domestically and in other international markets. The H200 was not specifically engineered with performance limitations for export.

President Trump highlighted that the H200’s capabilities have already been surpassed by Nvidia’s subsequent chip generations, including the Blackwell and Rubin AI processors currently in production. “It’s not the highest level, but it’s a pretty good level, and China wants them and other people want them, and we’re going to be making 25% on the sale of those chips, basically,” Trump stated. He had initially announced the H200 approval and the 25% tariff a month prior.

The Chinese market for AI chips was previously estimated by Nvidia to be worth as much as $50 billion annually. “We’re allowing them to do it, but the United States is getting 25% of the chips, in terms of the dollar value,” Trump elaborated.

According to a filing published Tuesday by the Department of Commerce, several conditions must be met for these sales. Exporters must certify that sufficient H200 chip supply remains within the U.S. and that these exports will not divert critical foundry capacity needed for more advanced AI chips destined for the American market. Additionally, the filing stipulates that chip purchasers in China must maintain robust security protocols and that the chips will undergo independent, third-party testing in the U.S. to verify their specifications before shipment. Shipments to China are also capped at 50% of the total product volume supplied to U.S. customers. The new regulations also make mention of Advanced Micro Devices (AMD) and its MI325X chip.

Nvidia has responded positively to the administration’s decision. A company spokesperson stated, “We applaud President Trump’s decision to allow America’s chip industry to compete to support high paying jobs and manufacturing in America. Offering H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance that is great for America.” The spokesperson further added, “The Administration’s critics are unintentionally promoting the interests of foreign competitors on U.S. entity lists — America should always want its industry to compete for vetted and approved commercial business, supporting real jobs for real Americans.”

This development aligns with recent statements from Nvidia CEO Jensen Huang, who indicated last week that demand for the H200 chip from Chinese customers has been “very high.” Huang confirmed that Nvidia had resumed production of the H200, remarking at CES in Las Vegas, “We’ve fired up our supply chain, and H200s are flowing through the line.”

However, the ultimate impact of this decision remains contingent on approval from Chinese regulators, who are actively promoting the development of domestic AI chip capabilities to achieve greater self-sufficiency, even if current homegrown alternatives are less advanced. Huang expressed that he is not anticipating a formal announcement from China regarding chip imports, expecting instead that “it’s just going to be purchase orders.”

Huang had previously projected a two-year forecast of $500 billion in AI chip sales through the end of 2026, noting that any H200 sales to China would be an incremental addition to this forecast.

The White House also confirmed Wednesday that a 25% tariff has been imposed on imports of certain advanced computing chips, including the H200, when they require import into the U.S. for testing before their eventual shipment to China. This measure is framed as a strategy to protect America’s economic and national security interests in the critical field of advanced computing.