The 25% tariff applies to advanced artificial intelligence chips that are not manufactured domestically
(Singapore) The first phase of US semiconductor tariffs will have a “minimal impact” on Singapore, the Ministry of Trade and Industry (MTI) said on Tuesday (20 January).
“Our preliminary assessment, in consultation with the industry, is that the first phase of semiconductor tariffs announced on 14 January 2026 will have minimal impact on Singapore, given that the tariffs will apply to a narrow category of semiconductors that are not currently manufactured in Singapore,” MTI said.
“We will continue to monitor the situation.”
US President Donald Trump has imposed 25% tariffs on certain artificial intelligence (AI) chips, including the Nvidia H200 and AMD’s similar semiconductor MI325X.
The move follows a nine-month investigation under Section 232 of the U.S. Trade Expansion Act of 1962, which subjects a number of high-end semiconductors and devices containing them to import duties that meet certain performance benchmarks.
This is part of a broader effort to create incentives for chipmakers to produce more semiconductors in the United States and reduce their dependence on chipmakers in other regions.
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The exemption also applies to chips imported for use in data centers, research and development, and certain public sector applications, as well as to increase domestic manufacturing capacity in the United States.
For now, the tariffs are narrowly focused, but the White House warned that broader semiconductor tariffs could be imposed “in the near future.”
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