Trump Administration Targets Biden-Era AI Chip Curbs, Could Scrap Country Tiers And Tighten Access To Nvidia's H100 Chips: Report

The Donald Trump administration is reportedly considering sweeping changes to Joe Biden-era restrictions on AI chip exports.

What Happened: Trump officials are weighing a significant overhaul of the Framework for Artificial Intelligence Diffusion, a rule issued in January by the U.S. Commerce Department under former President Joe Biden, reported Reuters on Tuesday, citing three sources familiar with the matter.

The rule currently splits the world into three tiers to determine how many advanced AI chips countries can access. Tier 1 nations, including 17 allies and Taiwan, have unlimited access. Tier 2 countries—about 120 in total—face caps, while Tier 3 nations like China, Russia and North Korea are completely blocked.

As per the report, the Trump administration is considering replacing this tiered structure with a global licensing regime, which would rely on individual government-to-government agreements to manage chip exports. 

See Also: Mark Cuban Slams Amazon For ‘Ripping Off American Sellers’ As Trump Tariffs Are Predicted To Boost Ecommerce Brands’ Profits

"There are some voices pushing for elimination of the tiers," said former Commerce Secretary under Trump, Wilbur Ross, on Tuesday. "I think it's still a work in progress."

Another change under discussion includes lowering the exemption threshold for chip orders. Currently, purchases under the equivalent of 1,700 Nvidia Corporation's NVDA H100 chips don't require a license—only notification.

The Trump team is reportedly considering cutting that threshold to 500.

Why It's Important: Commerce Secretary Howard Lutnick previously signaled openness to using export controls in trade negotiations, aligning with Trump's broader foreign policy strategy of leveraging U.S. assets in bilateral deals.

Earlier this week, Zhao Chenxin, vice chairman of China's National Development and Reform Commission (NDRC), said he is "fully confident" that they will achieve their 5% growth target for 2025, despite increasing economic headwinds and analyst warnings of a potential slowdown.

Meanwhile, Torsten Slok, chief economist at Apollo Global Management, an American asset management fund, has estimated a "90% chance" of recession if current tariff levels persist—echoing growing concerns among global financial experts.

Nvidia’s growth score ranks in the 94th percentile, according to Benzinga Edge Stock Rankings. Want to see how other chipmakers stack up? Click here to explore the full list.

Photo Courtesy: Hepha1st0s/ Shutterstock

Read Next: 

• What Caused Sam Altman-Founded World Network Token To Soar 57% in a Week? What Caused Sam Altman-Founded World Network Token To Soar 57% in a Week?

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.