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Trump signals US might ease chip export curbs on some Gulf countries

  • The Trump administration announced plans to ease Biden-era export restrictions on AI chips to some Gulf countries ahead of a Middle East trip in May 2025.
  • The Biden administration imposed complex AI chip controls in January 2025 to limit Chinese military access and maintain US AI leadership, dividing countries into tiers for export caps.
  • The planned Biden rule faced criticism for bureaucratic complexity and unenforceability, prompting the Trump administration to draft a simpler export policy emphasizing innovation and security.
  • On May 7, Nvidia’s stock increased by 3% following announcements about the relaxation of the rule, as a Commerce Department spokeswoman stated that the existing regulation would be replaced with a simpler policy designed to promote U.S. Leadership in AI technology and foster innovation.
  • This policy shift suggests the US may relax controls on semiconductors for Gulf allies, balancing technology leadership with diplomatic goals amid ongoing China concerns.
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Portfolio.hu broke the news in on Wednesday, May 7, 2025.
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