Key Takeaways:
- Revenue-Sharing Deal: Nvidia and AMD agreed to give the U.S. government 15% of revenues from specific chip sales to China in exchange for export licenses.
- Tariff Leverage in Action: The arrangement follows Trump’s threat of a 100% tariff on semiconductor imports unless companies build in the U.S.
- America-First Tech Policy: The deal ensures U.S. tech exports generate direct economic benefits while maintaining leverage over strategic industries.
In a deal that blends hardball trade policy with cold business pragmatism, Nvidia and Advanced Micro Devices (AMD)have reportedly agreed to give the U.S. government a 15% cut of revenues from certain chip sales to China. In exchange, the Trump administration will grant export licenses for Nvidia’s H20 and AMD’s MI308 chips, the Financial Timesreports.
The move marks an unprecedented arrangement between the White House and two of America’s tech giants — one that keeps critical supply chains under U.S. oversight while leveraging President Donald Trump’s aggressive tariff strategy.
Trump has made it clear: if you want access to foreign markets, you build in America first. Just last week, he threatened a 100% tariff on imported semiconductors and chips unless companies move manufacturing to U.S. soil.
Nvidia CEO Jensen Huang reportedly met with Trump before the deal was announced. Nvidia told the Financial Times: “We follow rules the U.S. government sets for our participation in worldwide markets.”
This revenue-sharing deal is more than a trade workaround — it’s a shot across the bow for companies relying on overseas production. Under Trump, America’s high-tech future isn’t just about innovation; it’s about making sure the profits, jobs, and strategic advantage stay right here at home.