U.S. Commerce draft to greatly expand control over AI chip exports clashes with President Trump’s push to loosen Biden-style restrictions and use advanced chips as leverage in global deals

U.S. Commerce draft to greatly expand control over AI chip exports clashes with President Trump’s push to loosen Biden-style restrictions and use advanced chips as leverage in global deals
Axios
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The Commerce Department has been drafting new rules that would greatly expand federal oversight of AI chip exports, including a licensing regime for foreign buyers, but the effort is running into opposition from President Trump’s White House. Axios reports that the draft, described as a sixth version and about 129 pages long, has moved through the Commerce Department and to the Office of Management and Budget, but senior administration officials say it does not reflect Trump’s approach and is only an early set of ideas. The clash sits inside a broader policy shift. In May 2025, the Commerce Department rescinded the Biden-era AI Diffusion Rule, which had created a tiered global licensing framework for advanced AI technologies, and said it would replace it later while tightening other semiconductor export controls. At the same time, Trump has been publicly pushing a pro-export strategy for the “American AI technology stack,” including using advanced chips as leverage in bilateral deals rather than imposing Biden-style restrictions. The dispute matters because it will shape how much access foreign customers can get to U.S. chips from companies such as Nvidia and AMD, and it will determine whether export controls are treated primarily as a security barrier or as a bargaining tool in trade and diplomacy.

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