US to Carve Out AWS from 25% China Chip Tariffs in Mid-2026 Plan
The US administration plans to exempt cloud providers from forthcoming 25% tariffs on Chinese-made server and AI chips to shield Amazon Web Services and peers from higher semiconductor costs. The carve-out, if approved, would delay duties due to take effect in mid-2026, easing capital expenditure on AI infrastructure.
1. Proposed Tariff Exemption
The US Commerce Department is drafting a carve-out for hyperscale cloud operators including Amazon Web Services, Google Cloud and Meta, exempting them from the next tranche of 25% duties on semiconductor imports from China. The relief aims to protect AI training and inference workloads from steep cost increases, with the tariffs scheduled to begin in mid-2026.
2. Impact on AWS Costs and Investment
By sparing AWS from additional duties, Amazon can avoid higher unit costs on data center chips, preserving its capital expenditure budget for expansion. Analysts estimate the exemption could save AWS hundreds of millions annually, supporting continued investment in global AI infrastructure while mitigating margin pressure.