The Trump administration aims to position the U.S. as a global leader in AI technology while ensuring that its advancements do not empower foreign adversaries. Striking this balance remains a challenge.
Released on Wednesday, President Trump’s AI Action Plan highlights the administration’s ongoing efforts to determine the best approach. The plan emphasizes America’s current leadership in data center construction, computing hardware performance, and AI models. It stresses the need to leverage this advantage into a lasting global alliance while preventing adversaries from benefiting from U.S. innovation.
The proposal includes measures to strengthen AI chip export controls through “creative approaches.” One recommendation urges government agencies, such as the Department of Commerce and the National Security Council, to collaborate with the AI industry on chip location verification features. Another suggests establishing an initiative to enforce potential export restrictions, noting that while major chip manufacturing systems face controls, many subsystem components do not—an area the administration wants to address.
The plan also underscores the importance of aligning with global allies on export controls. It advocates for strong restrictions on sensitive technologies and encourages partners to adopt similar measures. If allies fail to comply, the U.S. should use tools like the Foreign Direct Product Rule and secondary tariffs to ensure alignment.
However, the AI Action Plan lacks specifics on how these alliances will be formed, how export restrictions will be coordinated, or how chip verification features will be implemented. Instead, it outlines foundational steps for future sustainable policies rather than immediate regulations.
Evidence suggests that implementing chip export restrictions will take time. The Trump administration has sent mixed signals in recent months. In July, it allowed semiconductor firms like Nvidia and AMD to resume selling AI chips to China, months after imposing licensing restrictions that had effectively barred Nvidia from the Chinese market. Additionally, in May, the administration revoked the Biden-era AI diffusion rule, which had limited AI computing capacity purchases by certain countries, just days before it was set to take effect.
The administration is expected to issue multiple executive orders on July 23, though it remains unclear whether these will provide detailed plans for achieving its AI goals. While the AI Action Plan discusses expanding the U.S. AI market globally while maintaining dominance, it offers few concrete steps. Any upcoming executive orders on chip export restrictions will likely focus on coordinating government efforts to develop a strategy rather than establishing formal guidelines immediately.