President Donald Trump has signed a proclamation imposing a 25 percent tariff on semiconductors that are imported into the United States and then reexported to third countries, including Nvidia’s artificial intelligence chip H200 and AMD's MI325X.

Speaking at the White House after signing the proclamation on Wednesday, Trump said that the H200 was not Nvidia's most advanced chip but described it as a high-quality product that is in demand in China and elsewhere, adding the United States would earn 25 percent of its sales and calling the arrangement “a very good deal.”

Trump had indicated in December that exports of the H200 to China would be allowed on the condition that 25 percent of revenue be paid to the U.S. government, and the Commerce Department completed the necessary revisions a day earlier.

According to the White House fact sheet, the measure follows a Commerce Department investigation under Section 232 of the Trade Expansion Act, which found that ongoing imports of semiconductors, semiconductor manufacturing equipment and their derivatives threaten U.S. national security.

The fact sheet states that Trump may also impose broader tariffs on semiconductor imports and their derivatives to incentivize domestic manufacturing in the near future.