Trump Administration Rescinds Biden’s AI Diffusion Rules Days Before Enforcement
The U.S. Department of Commerce (DOC) has formally rescinded the Biden administration’s Artificial Intelligence Diffusion Rule just days before it was set to take effect. The rule, introduced in January 2025, would have imposed new AI chip export restrictions on multiple countries while tightening existing controls on others. Instead, the Trump administration plans to replace it with a strategy focused on direct negotiations rather than blanket bans.
Key Changes and Industry Guidance
The now-rescinded AI regulation categorized countries into three tiers, each with varying export restrictions. Tier 1 nations like Japan and South Korea faced no new limits, while Tier 2 countries, including Mexico and Portugal, would have seen first-time restrictions. Tier 3 regions, such as China and Russia, were set for even tighter controls.
In place of these rules, the DOC issued updated guidance emphasizing existing restrictions, including a ban on Huawei’s Ascend AI chips and warnings against using U.S. chips for AI model training in China. The agency also recommended safeguards against supply chain diversion.
Shift in AI Export Policy
Commerce Secretary Jeffery Kessler stated the administration’s intent to pursue a "bold, inclusive strategy" for AI technology sharing with trusted allies while preventing access by adversaries. The move signals a departure from Biden’s tiered restrictions, favoring a more flexible approach.