Trump announces 20% tariff on Vietnamese exports in scaled-back trade move
U.S. President Donald Trump has announced a reduced 20% tariff on many Vietnamese exports, down from a previously planned 46%, in what he described as...
The Trump administration is reviewing possible changes to a Biden-era rule that restricts global access to advanced AI chips, including potentially scrapping the current system that divides countries into three tiers, according to three sources familiar with the matter.
The rule, known as the Framework for Artificial Intelligence Diffusion, was issued by the U.S. Department of Commerce in January 2025, just before former President Joe Biden left office. It is set to take effect on May 15. Its primary goal is to keep the most sophisticated AI technologies within the U.S. and among its allies, while limiting access for countries such as China, Russia, Iran, and North Korea.
Currently, the rule categorizes countries into three groups: a first tier with unrestricted access (including 17 countries and Taiwan), a second tier subject to caps, and a third tier—countries of concern—completely blocked from obtaining the chips.
Trump officials are now considering replacing the tiered system with a global licensing regime based on government-to-government agreements, sources told Reuters. Such a move would align with President Donald Trump’s broader trade strategy, using access to U.S. technology as leverage in bilateral negotiations.
"There are some voices pushing for elimination of the tiers," former Commerce Secretary Wilbur Ross said in an interview Tuesday. He added that the proposal remains "a work in progress," but noted government-to-government agreements are one possible alternative.
Other changes under consideration include tightening the threshold for chip orders exempt from licensing requirements. Currently, orders under the equivalent of about 1,700 of Nvidia’s H100 chips only require notification to the government, not a license. The Trump administration may lower that threshold to orders equivalent to about 500 H100 chips, one source indicated.
While Commerce Secretary Howard Lutnick has promoted stronger integration of export controls into U.S. trade talks, critics argue that eliminating the tiers could complicate enforcement rather than simplify it.
Ken Glueck, executive vice president at Oracle and a vocal critic of the current rule, questioned the logic of the tier system, pointing to inconsistencies such as Israel and Yemen both being classified in the second tier. "Wouldn't surprise me they're going to take a new look at this," Glueck said.
Tech giants Oracle and Nvidia had both voiced strong criticism when the original rule was issued. Industry leaders argue that excessive restrictions could push buyers in Tier 2 countries toward Chinese alternatives, a concern echoed by seven Republican senators who recently called for the rule’s withdrawal in a letter to Secretary Lutnick.
As the May 15 implementation date nears, the Trump administration’s final decision on revising the rule could have significant implications for the future of AI chip distribution and international tech competition.
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
A magnitude 5.5 earthquake struck off Japan’s Tokara Islands on Wednesday, with no tsunami warning issued but residents advised to remain vigilant.
The United States has rescinded licensing restrictions on ethane exports to China, allowing shipments to resume after a temporary halt and signalling progress in efforts to ease recent trade tensions.
The European Commission is set to propose allowing carbon credits from other countries to count towards the EU’s 2040 climate target, according to a leaked internal document.
China has ramped up efforts to protect communities impacted by flood control measures, introducing stronger compensation policies and direct aid from the central government.
The World Health Organization has called for a 50% price increase on sugary drinks, alcohol, and tobacco over the next decade, pushing for taxation as a means to reduce chronic diseases and raise funds for health systems.
The European Union has raised Ukraine's electricity export capacity by 38.5%, enabling the country to generate additional revenue to repair energy infrastructure damaged by Russian attacks.
Australia has finalised a AU $2 billion ($1.3 billion) purchase of U.S. made supersonic missiles, reinforcing its commitment to defence investment while stopping short of U.S. calls to adopt a higher military spending target.
U.S. President Donald Trump has announced a reduced 20% tariff on many Vietnamese exports, down from a previously planned 46%, in what he described as a new trade framework with Hanoi.
China’s northern and western provinces are on high alert for flash floods and landslides as intense monsoon rains continue to overwhelm defences, killing at least seven and displacing communities across the country.
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