Trump Signs Agreement with Nvidia and AMD on Export Taxes

• Nvidia and AMD have agreed to share 15% of their sales revenue with China.
• Trump is considering the possibility of buying shares in Intel following criticism of the company's CEO.
• The agreement with Nvidia and AMD may have negative consequences for the US economy.

Two of the largest semiconductor manufacturers in the US, Nvidia and AMD, have agreed to share 15% of their sales revenue of artificial intelligence semiconductors with China. This agreement is essentially an export tax, although neither side labels it as such. This move could negatively impact the economy and national security of the US.

In April 2025, the US government banned sales to China of Nvidia's H20 microchips and AMD's MI301 due to national security concerns. However, in July, the administration changed its stance and agreed to the sales, but delayed the issuance of necessary licenses for export. On September 6, Nvidia CEO Jensen Huang and President Trump reached an agreement on a 15% payment. Two days later, the US Department of Commerce approved the licensing.

This agreement raises supererogatory goals. Trump is keen to support domestic manufacturing, but export taxes limit the sales of American goods abroad. It is projected that this agreement will bring nearly $2 billion in new revenues for the federal budget, but in reality, this may be significantly less.

Constitutional issues also arise from this agreement, as export taxes are prohibited by the US Constitution. The government is likely attempting to circumvent this, arguing that payments are voluntary. However, if companies cannot obtain licenses without agreeing to pay, this raises questions about the legality.

In connection with this, Trump is also considering the possibility of buying shares in Intel after criticizing the company's CEO, Lip-Bu Tan. At a meeting in the White House, the potential financial participation of the government in Intel was discussed, which, according to Trump, would help the company develop its manufacturing. This situation is unfolding against the backdrop of Tan's criticism of his ties to China.

Overall, these actions by Trump could significantly change the landscape of the American semiconductor industry, initiating increasing pressure from the government on the private sector.

Tags: USA/China/Politics/Economy/Technology