White House plans 15% tax on Nvidia and AMD China sales: 8 things to know

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.

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.

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.

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.

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.

Legal Questions Arise
Trade lawyers and industry experts have questioned the legality of the agreement, noting existing laws regulating government fees for export licences.

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.