White House plans 15% tax on Nvidia and AMD China sales: 8 things to know
The White House is finalising a 15% export tax on revenue from Nvidia and AMD chip sales to China. The deal grants the companies licences for AI chips designed for the Chinese market in exchange for a revenue share. Currently limited to Nvidia and AMD, the arrangement could expand to other companies in the future. The Department of Commerce is still working on the legal and operational details. The taxed chips, including Nvidia’s H20 and AMD equivalents, are part of U.S. efforts to restrict China’s access to advanced AI technology with potential military applications, and the agreement has sparked legal and industry debate.
New Export Tax in the Works The White House is finalising a 15% export tax on revenue from Nvidia and AMD chip sales to China, part of a deal granting the companies licenses for AI chips designed specifically for the Chinese market.
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Only Nvidia and AMD So Far White House spokesperson Karoline Leavitt confirmed that the tax arrangement currently applies only to these two chipmakers but hinted that similar deals could be expanded to other companies in the future.
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Implementation Still Pending Leavitt noted that the Department of Commerce is still ironing out the legal and practical mechanics of the deal, indicating the agreement is far from finalised.
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Trump Demands Revenue Share President Donald Trump told Nvidia and AMD that the 15% payment to the U.S. government is a condition of granting export licences for China-specific AI chips.
Trump Critiques Nvidia Chips Trump referred to Nvidia’s H20 chips as “obsolete” while discussing the deal, emphasising the government’s role in controlling advanced AI exports.
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Companies Respond Nvidia stated it follows all rules set by the U.S. government for global markets. AMD has not publicly commented, but both companies are preparing to comply with the export licence requirements.
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Legal Questions Arise Trade lawyers and industry experts have questioned the legality of the agreement, noting existing laws regulating government fees for export licences.
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Strategic Importance The taxed chips, including Nvidia’s H20 and AMD equivalents, were designed to comply with 2023 U.S. export restrictions, aimed at limiting China’s access to advanced AI technology that could boost military capabilities.
