As President Trump continues to impose restrictions with his tariffs, his administration recently announced of considering major changes to a Biden-era rule. This includes potentially removing the current tier-based system that governs how many chips countries can receive.
For those unaware, the Biden administration executed the "Framework for Artificial Intelligence Diffusion," issued in January 2025. This divides countries into three tiers, limiting chip access to protect U.S. tech from foreign countries like China. Current officials are exploring a global licensing system based on government-to-government deals, which could align with Trump’s trade negotiation style and make U.S. chip access a trade bargaining tool.
According to the source, it reported that the cutoff for chip export exceptions may be lowered from orders equivalent to 1,700 Nvidia H100 chips to 500, tightening restrictions. While it sounds good on paper, some experts warn that eliminating tiers may complicate enforcement. Companies like Oracle and NVIDIA, and several GOP lawmakers, oppose the current rule, arguing it could push countries toward Chinese alternatives.
With the current rule of the Framework for Artificial Intelligence Diffusion, companies in the US must comply with it starting 15 May 2025. As for the potential removal, no final decision has been made yet. The Commerce Department has not commented on the potential changes as well.
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