The Donald Trump administration's newly announced 25% tariff on select high-end semiconductors is only an initial step.<h2>Tariff Move Labeled ‘Phase One'</h2>On Thursday, a White House official told Reuters that the 25% national security tariff imposed on certain advanced semiconductors is a &#34;phase one&#34; measure.Speaking on condition of anonymity, the official said further announcements are possible depending on the outcome of talks with other countries and chipmakers.The official also highlighted that Trump has previously warned that semiconductors manufactured outside the U.S. could eventually face tariffs as high as 100%.<h2>High-End AI Chips Targeted</h2>The tariffs, announced Wednesday by the U.S. Commerce Department, apply to a range of high-performance semiconductors, including Nvidia Corp's (NASDAQ:NVDA) H200 artificial intelligence processor and Advanced Micro Devices, Inc.'s (NASDAQ:AMD) MI325X chip.The action stems from a nine-month investigation conducted under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose trade restrictions on national security grounds.<h2>Trump Administration Secures Taiwan Deal</h2>Meanwhile, on Thursday, the Trump administration reached a trade agreement with Taiwan.The Commerce Department said Taiwanese chip and technology companies will invest at least $250 billion to expand U.S. production capacity, backed by $250 billion in credit guarantees from the Taiwanese government.In return, the U.S. agreed to cap &#34;reciprocal&#34; tariffs on Taiwan at 15%, down from 20%, and eliminate duties on select goods.<h2>ISM Data Signals Manufacturing Strain</h2>The new agreement comes as U.S. manufacturing remains under pressure.The Institute for Supply Management's Manufacturing Purchasing Managers' Index fell to 47.9 in December, its lowest reading of 2025, marking the sector's 10th straight month of contraction.Survey respondents cited tariffs and trade policy uncertainty as key factors weighing on demand and operations.Nvidia shows a negative price trend in the short and medium term but remains positive over the long term, while carrying a weak Value ranking, according to Benzinga's Edge Stock Rankings.<figure class="wp-block-image size-full"></figure>Image by Rokas Tenys via ShutterstockDisclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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The Trump administration's 25% national security tariff on advanced AI chips is labeled as a 'phase one' measure, with potential for increased duties up to 100% on foreign semiconductors. This follows a $250 billion investment deal with Taiwan to boost U.S. chip production. The tariffs target high-performance semiconductors, including Nvidia's H200 and AMD's MI325X. U.S. manufacturing faces challenges, as indicated by a decline in the Manufacturing Purchasing Managers' Index, attributed to tariffs and trade policy uncertainty.

- The Trump administration has announced a 25% tariff on select high-end semiconductors, described as a "phase one" measure.  
- This tariff arises from a lengthy investigation under national security grounds and targets advanced chips from companies like Nvidia and AMD.  
- Additionally, a trade agreement with Taiwan will see investments to boost U.S. production, while U.S. manufacturing faces ongoing pressure highlighted by declining index readings.

White House Signals Trump's 25% 'National Security Levy' On Chips Is Just A 'Phase One' Measure