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US Eases Restrictions on Nvidia H200 AI Chip Exports to China with 25% Tariff

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By Vedprakash sahu

President Donald Trump announced Monday that the United States will allow Nvidia to export its H200 artificial intelligence chips to China, subject to a 25% tariff. The H200 is currently Nvidia’s second-most powerful AI accelerator after the restricted Blackwell series.


Trump stated on Truth Social that he personally informed Chinese President Xi Jinping of the decision, describing Xi’s response as positive. The president said the policy will protect American jobs and national security while preserving U.S. leadership in artificial intelligence. The same rules will apply to comparable chips from AMD and Intel.

A White House official said the chips will be routed through the United States from Taiwan for security screening before final shipment to China. Nvidia shares rose more than 3% in regular trading following the announcement.

The move partially reverses restrictions imposed during the Biden administration over concerns that advanced AI hardware could enhance Chinese military capabilities. Temporary blocks on H200 sales earlier this year had already been lifted in some cases.

Beijing had previously cautioned its tech giants against buying Nvidia’s China-specific downgraded chips (H20, RTX 6000D, L20). Independent estimates indicate the H200 delivers roughly six times the AI performance of the H20.

Critics, including former Commerce Department officials and some lawmakers from both parties, warned that the decision risks accelerating China’s military AI programs and increasing the chance of technology diversion. China’s Foreign Ministry welcomed the development, saying mutual cooperation benefits both sides.

U.S. officials stressed that the latest Blackwell-generation chips remain fully prohibited, and the Commerce Department is still finalizing implementation details. Nvidia CEO Jensen Huang was informed of the policy shift after a recent meeting with administration officials.

The decision comes as Chinese firms Huawei, Cambricon, and Moore Threads continue rapid development of domestic alternatives, reducing Beijing’s long-term dependence on American technology.

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