On August 11, 2025, the Trump administration secured a deal granting export licenses to Nvidia and AMD—but only if the companies agree to give 15% of their revenue from AI chip sales in China to the U.S. government. President Trump confirmed he initially demanded 20%, then negotiated down to 15% during a meeting with Nvidia CEO Jensen Huang.
The agreement permits Nvidia to resume exporting its H20 chip and allows AMD to ship its MI308 chip to China—moves previously halted due to national security concerns. Critics labeled the deal a “creative taxation scheme,” stressing that export taxes are constitutionally prohibited.
Editorial commentary underscores the move’s dubious fiscal logic. Analysts argue the revenue—projected at around $3 billion annually—is negligible compared to federal deficits. The policy raises questions about national security consistency and the unwieldy government role in commercial decisions.
Despite criticism, administration officials defended the policy, framing it as a strategic concession in the fierce U.S.–China AI rivalry.
