Trump Lifts AI Chip Export Restrictions to Foreign Markets/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Trump administration has rescinded a sweeping Biden-era rule that would have curbed AI chip exports to over 100 countries, citing innovation and diplomatic concerns. U.S. tech giants and foreign governments had opposed the restrictions, fearing economic fallout and a tilt toward China. A new framework to protect security while preserving global partnerships is in development.
AI Export Reversal Quick Looks
- Commerce Department revoked Biden-era AI export rule set to take effect Thursday
- Rule limited exports of advanced AI chips without federal approval
- Over 100 countries were impacted, including Middle Eastern nations
- Tech firms like Nvidia and AMD lobbied against the policy
- Microsoft President Brad Smith warned it could alienate U.S. allies
- European Commission welcomed the reversal, calling the rule “damaging”
- Trump administration plans a replacement framework focused on trusted partners
- AI chip exports to China and Russia remain tightly restricted
- No timeline yet given for the new export guidance
- Trump currently touring Gulf nations, where AI demand is rising
Deep Look: Trump Rescinds AI Chip Export Curbs to Boost Global Tech Ties
NEW YORK — May 14, 2025 — In a major policy shift with broad implications for the tech industry and U.S. diplomacy, the Trump administration on Tuesday scrapped a pending Biden-era rule that would have imposed strict limits on AI chip exports to over 100 foreign markets.
Originally due to take effect Thursday, the rule would have required federal licensing for U.S. companies to export high-performance artificial intelligence processors — including those produced by Nvidia, AMD, and other tech leaders — to dozens of allied countries across Europe, Asia, and the Middle East.
“These new requirements would have stifled American innovation and saddled companies with burdensome new regulatory requirements,” the Commerce Department said in its updated guidance.
The rescinded rule had been introduced in the final months of the Biden administration in a bid to balance national security concerns with technological leadership. While it sought to plug loopholes in existing controls on exports to adversaries like China and Russia, it also swept up many U.S. allies, triggering immediate backlash.
Allies Push Back — and Win
Tech firms and foreign governments mounted strong opposition to the policy:
- Microsoft President Brad Smith told Congress the rule sent a message that “120 nations couldn’t necessarily count on us.”
- European Commission spokesperson Thomas Regnier warned it would “undermine U.S. diplomatic relations” and treat economic partners like second-class customers.
- Industry analysts cautioned that it could drive friendly nations toward Chinese AI suppliers, weakening the U.S. competitive edge.
“We cooperate closely, in particular in the field of security,” said Regnier. “We represent an economic opportunity for the U.S., not a security risk.”
Trump’s Pivot: Innovation and Alignment
Commerce Undersecretary Jeffery Kessler announced the Trump administration is now developing a new export framework that will aim to protect sensitive technologies while allowing continued commerce with “trusted foreign countries.”
“We’re going to make sure the U.S. leads in AI — and that our partners can count on us,” Kessler said.
No specific timeline was given for the release of the new rule, but officials suggested that it will involve tiered partnerships, geostrategic alignment, and possibly expedited licensing pathways for NATO allies and other close partners.
Global Context: Middle East Focus
The announcement coincides with President Trump’s ongoing Middle East tour, which includes stops in Saudi Arabia, Qatar, and the UAE — all of which were impacted by the rescinded rule and are rapidly expanding investments in AI infrastructure and smart cities.
“Oh, what I do for the crown prince,” Trump quipped in Saudi Arabia, hinting that the AI rule change may have been partly influenced by Gulf leaders.
With $1 trillion in Gulf investment on the table, U.S. tech companies now see the region as a key frontier for AI expansion — a fact not lost on Trump’s economic team.
What’s Next?
With the Biden-era restrictions now officially dead, attention shifts to the forthcoming Trump replacement rule:
- Will it grandfather in previously restricted markets like the UAE and Saudi Arabia?
- Will it include blacklists or conditional licensing for politically sensitive countries?
- Will China’s pressure to supply AI chips be countered with new multilateral export agreements?
The administration has so far remained vague, but observers expect coordination with NATO, Japan, and EU leaders ahead of any formal announcement.
You must Register or Login to post a comment.