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Trump Administration Imposes 15% Levy on U.S. Chip Sales to China.
in a landmark move that’s sending shockwaves across the global tech and geopolitical landscape, the U.S. government will collect 15% of Nvidia and AMD’s gross revenue from AI chip sales to China, according to multiple reports from Financial Times, The New York Times, and CNBC.The arrangement, confirmed within the past 24 hours by the AP and CNN, allows both chipmakers to resume limited exports of advanced AI chips to China—provided they pay the U.S. a cut of the sales. The deal comes amid mounting export restrictions first imposed in 2022, aimed at curbing China’s access to cutting-edge AI and semiconductor technology.
The New York Times describes the move as “unprecedented,” while CNBC highlights the wider geopolitical implications, suggesting the deal reflects a more transactional U.S. trade approach under President Trump’s administration.
Meanwhile, CNN reports Chinese state media is pushing back, warning of hidden risks in foreign-made AI chips and urging accelerated domestic development. Tensions over potential “kill switches” or backdoors in U.S. chips have resurfaced, though Nvidia has publicly denied any such vulnerabilities.
This 15% licensing fee raises significant legal and ethical questions about government intervention in private-sector international trade—and sets a striking precedent for future tech diplomacy.
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