A recent analysis reveals that Nvidia, the leading AI chip manufacturer, could potentially avoid the impact of Trump-era tariffs on its AI server products, thanks to its significant manufacturing presence in Mexico.
With approximately 60% of Nvidia's server assembly taking place in Mexican facilities, the company appears positioned to benefit from exemptions under existing trade agreements between the United States and Mexico.
The geographic advantage stems from Nvidia's strategic decision to establish substantial server manufacturing operations south of the U.S. border. This manufacturing footprint may prove particularly valuable as trade tensions and tariff policies continue to evolve.
Industry analysts note that while the tariffs were designed to address trade imbalances, products substantially transformed in Mexico typically qualify for preferential treatment under the USMCA (United States-Mexico-Canada Agreement).
The potential tariff exemption could help Nvidia maintain competitive pricing for its AI servers in the U.S. market, where demand for AI computing infrastructure continues to grow rapidly.
However, experts caution that the final impact will depend on specific product classifications and the detailed interpretation of trade regulations. Nvidia has not publicly commented on the potential tariff implications for its Mexican-assembled servers.
This development comes at a time when the semiconductor industry faces increased scrutiny over global supply chains and trade compliance, particularly regarding advanced technology exports.