The Trump administration has proposed a 15% export tax on chipmaker Nvidia and Advanced Micro Devices (AMD), which could potentially be applied to other companies. According to White House spokesperson Karoline Leavitt, the tax applies currently to these two companies but may expand in the future.
The US government is still working out the details of the tax, with lawyers and experts warning that existing laws regulating export licenses may complicate the deal. The proposed tax is related to the US’s national security concerns over AI chips being used by China to advance its capabilities or support military operations.
President Donald Trump recently confirmed a deal with Nvidia, in which the company agrees to pay 15% of revenue on export licenses for its Chinese-specific H20 AI chip. AMD also received export licenses in exchange for a proportion of its China sales. However, trade experts have raised concerns about the tax’s legality and implementation due to existing regulations.
Nvidia has stated that it follows US government rules for participating in global markets. The Commerce Department has not commented on the proposal yet. This development comes as the Chinese government has been encouraging local companies to avoid using Nvidia’s H20 chips for government or national security-related work.
Source: https://www.cnbc.com/2025/08/12/white-house-working-out-legality-nvidia-amd-china-chip-deals.html