Trump’s AI chip tariffs have ‘minimal impact’ on Singapore: MTI

The 25% duties apply to advanced artificial intelligence chips not manufactured locally

Tessa Oh
Published Tue, Jan 20, 2026 · 03:36 PM
    • While the tariffs are currently narrowly focused, the White House cautioned that broader semiconductor tariffs may follow “in the near future”.
    • While the tariffs are currently narrowly focused, the White House cautioned that broader semiconductor tariffs may follow “in the near future”. IMAGE: REUTERS

    [SINGAPORE] The first phase of the US semiconductor tariffs will have “minimal impact” on Singapore, said the Ministry of Trade and Industry (MTI) on Tuesday (Jan 20).

    “Our preliminary assessment, in consultation with the industry, is that the first phase of the semiconductor tariffs announced on Jan 14, 2026, has minimal impact on Singapore, given that the tariffs apply to a narrow category of semiconductors not currently manufactured in Singapore,” said MTI.

    “We will continue to monitor the situation.”

    US President Donald Trump has imposed a 25 per cent tariff on certain artificial intelligence (AI) chips, including the Nvidia H200 and a similar semiconductor from AMD called the MI325X.

    The move follows a nine-month investigation under Section 232 of the US’ Trade Expansion Act of 1962, and targets a number of high-end semiconductors meeting certain performance benchmarks and devices containing them for import duties.

    It is part of a broader effort to create incentives for chipmakers to produce more semiconductors in the US and decrease the nation’s reliance on chip manufacturers elsewhere.

    Exemptions apply to chips imported for the build-out of US domestic manufacturing capacity, as well as for use in its data centres, research and development, and certain public-sector applications.

    While the tariffs are currently narrowly focused, the White House cautioned that broader semiconductor tariffs may follow “in the near future”.

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