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US GOP Senators Urge Trump Administration to Reject Biden’s AI Chip Rule

Seven GOP senators have urged Commerce Secretary Howard Lutnick to revoke a Biden-era AI chip rule, arguing that its tiered restrictions could stifle U.S. tech investments and inadvertently boost Chinese competition.
Published on April 15, 2025

Seven Republican senators have pressed the Trump-aligned Commerce Secretary Howard Lutnick to revoke a Biden-era rule that is set to take effect on May 15, 2025. In an April 11 letter, the senators argued that the tiered country system limits access even for allies such as Israel while imposing rigid purchasing limits and licensing processes on most other nations. They warned that this approach creates uncertainty for American companies, delays investments, and ultimately risks undermining U.S. leadership in artificial intelligence.

The senators maintained that while it is appropriate to restrict Tier 3 nations like China, the rule’s stringent measures on Tier 2 countries might drive these markets toward Chinese alternatives, thereby weakening America’s global tech influence. They called on the Commerce Department to design a more balanced policy that protects national security and counters Chinese competition without harming U.S. competitiveness. As of now, the Commerce Department has not responded to the request.


Sources
Reuters