The Middle East has so far largely dodged direct fallout from US President Donald Trump’s tariff broadside, but the next salvo in his global trade reset could reshape a sector key to regional tech ambitions — semiconductors.  

On April 14, the US Commerce Department revealed a national security investigation into semiconductor technology imports, a probe widely viewed as a precursor to sweeping new tariffs aimed at reducing US dependence on East Asian chipmakers. A day earlier, Trump said he would soon unveil tariff rates on semiconductors and also suggesting that certain companies could receive exemptions.

The administration has not released additional details, but even the prospect of new tariffs is already jolting the global tech landscape. Case in point: American AI chip giant Nvidia on April 14 pledged to invest up to $500 billion in AI infrastructure in the United States in partnership with the Taiwan Semiconductor Manufacturing Company (TSMC). 

Despite this show of alignment with US industrial goals, barely 24 hours later Nvidia disclosed that the US government had told the company it would need a new license to export its H20 chips to China — a new hurdle impacting sales worth billions.