US Imposes 25% Targeted Chip Tariffs, Citing National Security Concerns

• The tariff will not apply to certain covered chips brought into the U.S. for data centers, domestic repairs, startup use, consumer or industrial applications outside data centers, government use, among others.
• In addition, the president may also consider broader tariffs on semiconductors later, as per the proclamation.
• The tariff will impact U.S. semiconductor companies like Nvidia, AMD, and Intel, which largely depend on overseas manufacturers to make their chips.

U.S. President Donald Trump on Wednesday issued a proclamation imposing a 25% tariff on the import of certain advanced computing chips and derivative products, citing a threat to national security.

The move comes amid a broader push for chipmakers in the U.S. to boost semiconductor manufacturing domestically.

“The United States consumes roughly one quarter of the world’s semiconductors.  The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains,” Trump said in the proclamation.

“This dependence on foreign supply chains is a significant economic and national security risk,” he added.  

The tariff would be effective from Jan. 15, 2026 and would be in addition to “any other duties, fees, exactions, and charges applicable to such imported semiconductors.”

Exemptions Listed

The tariff will not apply to certain covered chips brought into the U.S. for data centers, domestic repairs, research and development, startup use, consumer or industrial applications outside data centers, government use, or other uses that the Commerce Secretary deems helpful to build U.S. tech supply chains or semiconductor manufacturing, while also addressing national security concerns, as per the proclamation.

Trump said that the Commerce Secretary Howard Lutnick would continue to monitor imports of semiconductors, semiconductor manufacturing equipment, and their derivative products to verify what tariffs would be applicable.

In addition, the president may also consider broader tariffs on semiconductors, as per the fact sheet. Trump added that on July 1, 2026, Lutnick would provide an update on the market for semiconductors used in U.S. data centers so as to determine whether these tariffs would need to be modified.

Tariff Impact

The tariff will impact U.S. semiconductor companies like Nvidia Corp. (NVDA), Advanced Micro Devices Inc. (AMD) and Intel (INTC), that largely depend on overseas manufacturers to make their chips.

Taiwan Semiconductor Manufacturing Corporation (TSM) is Nvidia's primary chip manufacturer, and the only chip partner for its advanced chips. TSMC is also the primary manufacturer of AMD’s advanced chips.

While Intel designs and manufactures most of its chips in its own foundries, the company relies on TSMC to produce some of its new processors.

Trump signed the proclamation shortly after the Commerce Department updated the license review policy for exports of some semiconductors to China and Macau, changing it from a presumption of denial to a case-by-case review.

The Trump administration is also reportedly nearing a deal with TSMC to commit to building more manufacturing units in America.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around NVDA shares remained in the ‘bullish’ territory over the past 24 hours amid ‘normal’ message volumes.

Meanwhile, retail sentiment around AMD shares and INTC stock was in the ‘extremely bullish’ territory over the past 24 hours and around American-listed TSM shares jumped to ‘extremely bullish’ from ‘bullish’ territory in the same time frame.

Shares of NVDA have risen 39% in the past year, while AMD shares have gained over 92%.

Meanwhile, INTC stock has climbed over 153% while TSM stock has gained over 62% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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