President Donald Trump enacted a 25% tariff on a narrow group of advanced semiconductor imports, targeting high-performance chips used in AI and data-intensive computing. The action follows a national security review under Section 232 that found U.S. dependence on foreign chip supply chains poses economic and defense risks. The tariffs apply only to select processors, and exclude chips destined for domestic research, data centers, consumer products, and public-sector use. The move is designed to accelerate U.S. semiconductor manufacturing, while limiting disruption to critical innovation ecosystems.