Trump rewrites AI chip export rules after Biden's three-tier diffusion framework collapses before taking effect

The Trump administration in January 2026 moved to rescind Biden's AI Diffusion Rule — a three-tier global framework issued January 15, 2025 that divided countries by chip access level. The rule required licenses reviewed "with presumption of denial" for Tier 1 adversaries (China, Russia, Venezuela), exceptions for 19 Tier 2 allies, and case-by-case approvals for all others — but the Trump administration reversed the H200 chip presumption-of-denial posture before the rule's May 15, 2025 compliance date, then formally rescinded it in May 2025. BIS began constructing a bilateral government-negotiation approach to replace it.