Fact Sheet: President Donald J. Trump Takes Action on Certain Advanced Computing Chips to Protect America’s Economic and National Security

1/14/2026

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Action Summary

National Security Focus: President Trump invoked Section 232 of the Trade Expansion Act of 1962 to address potential national security threats posed by imports of semiconductors, semiconductor manufacturing equipment, and related products.
Tariff Implementation: A 25% tariff was imposed on certain advanced computing chips (e.g., NVIDIA H200 and AMD MI325X), with exemptions for chips that bolster the domestic technology supply chain.
Negotiations and Future Actions: The U.S. Secretary of Commerce and U.S. Trade Representative have been directed to negotiate or continue existing negotiations to mitigate national security risks, with potential for broader tariffs and a tariff offset program to boost domestic manufacturing.
Domestic Production Incentives: Emphasis is placed on reducing dependence on foreign semiconductor supply chains by incentivizing domestic production, which is critical for sustaining economic, industrial, and military strength.
Historical Context and Precedent: The action builds on previous Section 232 measures and the America First Trade Policy, reinforcing earlier efforts to protect key industries such as steel, aluminum, and other critical sectors.

Risks & Considerations

The imposition of a 25% tariff on certain advanced computing chips could increase costs for research and development projects at Vanderbilt University, particularly those relying on imported semiconductor technology.
The potential for broader tariffs on semiconductors may lead to increased expenses for any university programs dependent on these technologies, impacting budgeting and financial planning.
This action may create opportunities for Vanderbilt to engage in research collaborations focused on domestic semiconductor production, aligning with federal incentives to bolster U.S. manufacturing capacity.
Supply chain disruptions could affect Vanderbilt’s access to necessary technology components, potentially delaying projects and affecting technological infrastructure.

Impacted Programs

Vanderbilt School of Engineering may face challenges in procuring semiconductor technology, affecting research and coursework involving advanced computing and electronics.
Vanderbilt University’s Tech Transfer Office might see opportunities to collaborate with domestic semiconductor manufacturers, leveraging new federal programs and incentives.
The Data Science Institute could encounter increased costs and potential delays in acquiring necessary computing chips for data-intensive research projects.
Vanderbilt’s partnerships with international tech firms may need reassessment to align with changing trade policies and national security considerations.

Financial Impact

Increased tariffs and potential supply chain disruptions could lead to higher costs for technology and equipment procurement, affecting Vanderbilt’s overall budget and resource allocation.
Opportunities for federal funding and incentives to support domestic semiconductor research could provide new revenue streams and collaborative projects for Vanderbilt’s research departments.
Adjustments in financial planning may be necessary to accommodate the potential increase in costs related to semiconductor-related imports.
Vanderbilt may need to explore alternative, possibly more expensive, suppliers for semiconductor products if international sources become less viable.

Relevance Score: 4 (The order presents significant potential for financial and operational impact on programs reliant on semiconductor technology.)

Key Actions

School of Engineering should increase focus on research and development in semiconductor technology. With the imposition of tariffs and incentives for domestic manufacturing, there could be greater opportunities for collaboration with U.S. semiconductor companies and government research initiatives.
Office of Federal Relations should monitor developments in trade policies and tariffs relating to semiconductors. This will help anticipate changes that might affect research funding or technology partnerships, ensuring that Vanderbilt remains competitive in securing federal resources.
Vanderbilt’s Tech Transfer Office should explore partnerships with domestic semiconductor manufacturers to commercialize research. This could amplify the university’s role in advancing semiconductor technologies and secure intellectual property collaborations.
Center for Technology and Education should integrate aspects of semiconductor manufacturing and national security into its curriculum. This would better prepare students for careers in sectors impacted by these policies, enhancing Vanderbilt’s appeal to prospective students.

Opportunities

Vanderbilt can leverage increased focus on domestic semiconductor production to establish new research centers or initiatives. By aligning with federal priorities, the university can enhance its reputation and attract significant funding for projects related to technology and national security.
The proclamation opens up potential for new government and industry partnerships. Vanderbilt could host conferences or forums to bring together key stakeholders in semiconductor and national security sectors, positioning itself as a leader in this critical field.

Relevance Score: 4 (The executive order’s impact on technology and manufacturing sectors necessitates significant strategic realignment and resource allocation.)

Average Relevance Score: 3

Timeline for Implementation

N/A – There is no specific deadline or timeline mentioned in the text, only general actions and possible future measures.

Relevance Score: 1

Impacted Government Organizations

U.S. Department of Commerce: The proclamation directs the Secretary of Commerce to lead the negotiation efforts regarding semiconductor imports, reflecting its central role in managing export/import controls and industrial policy to protect national security.
Office of the United States Trade Representative (USTR): The President also tasks the USTR with joint negotiations on trade agreements to address the security implications of semiconductor imports, highlighting its involvement in shaping U.S. trade strategies.

Relevance Score: 1 (Only two federal agencies are directly engaged by the directive.)

Responsible Officials

U.S. Secretary of Commerce – Tasked with jointly negotiating or continuing existing negotiations of agreements to address national security concerns related to semiconductor imports.
U.S. Trade Representative – Responsible for jointly negotiating or continuing negotiations of agreements to mitigate threats posed by foreign semiconductor imports.

Relevance Score: 5 (Directives affect high-level Cabinet officials with strategic economic and national security responsibilities.)