diff --git a/builtin/providers/aws/resource_aws_instance.go b/builtin/providers/aws/resource_aws_instance.go
index 5d0bdac99..8a03b607c 100644
--- a/builtin/providers/aws/resource_aws_instance.go
+++ b/builtin/providers/aws/resource_aws_instance.go
@@ -732,7 +732,7 @@ func resourceAwsInstanceUpdate(d *schema.ResourceData, meta interface{}) error {
 	restricted := meta.(*AWSClient).IsGovCloud() || meta.(*AWSClient).IsChinaCloud()
 
 	if d.HasChange("tags") {
-		if !d.IsNewResource() || !restricted {
+		if !d.IsNewResource() || restricted {
 			if err := setTags(conn, d); err != nil {
 				return err
 			} else {