Nvidia and Amd agree on 15% 'tariffs' on exports to China

Nvidia and Amd have agreed to divest 15 per cent of revenues from chip sales to China with the US government. This was confirmed by President Donald Trump at a press conference.

In April, the Trump administration had halted the sale of advanced computer chips to China on national security grounds, but in July, Nvidia and Amd revealed that Washington would allow the resumption of sales of H20 and MI308 chips, used in the development of artificial intelligence. The president said he initially demanded 20 per cent of sales in exchange for export licences, crediting Nvidia CEO Jensen Huang with negotiating a reduction in the quota to 15 per cent. Derek Scissors, senior researcher and China expert at the conservative American Enterprise Institute, questioned the constitutionality of the deal and also warned against jeopardising national security for tax revenues. "There is no precedent for this, probably because export taxes are unconstitutional," Scissors said, speaking to the Associated Press news agency.

On Wednesday, Nvidia CEO Jensen Huang met US President Donald Trump at the White House and agreed to pay the federal government a percentage of its revenues, according to Anglo-Saxon media reports. Nvidia, the world's leading semiconductor manufacturer, has become the first company ever to reach a market value of $4 trillion. The deal is part of a pact to secure export licences to the world's second-largest economy amid tensions over US tariffs. "We follow the rules set by the US government for our participation in world markets. Although we haven't shipped' H20 chips to China in months, we hope the export control rules will allow America to compete in China and around the world,' Nvidia told British broadcaster BBC.