HomeAI chipsTrump strikes “wild” deal making US firms pay 15% tax on China chip sales

Trump strikes “wild” deal making US firms pay 15% tax on China chip sales

AI chipsAugust 11, 2025
2 min read
Trump strikes “wild” deal making US firms pay 15% tax on China chip sales
The deal won’t resolve national security concerns. ...
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Ahead of an August 12 deadline for a US-China trade deal, Donald Trump's tactics continue to confuse those trying to assess the country's national security priorities regarding its biggest geopolitical rival.

For months, Trump has kicked the can down the road regarding a TikTok ban, allowing the app to continue operating despite supposedly urgent national security concerns that China may be using the app to spy on Americans. And now, in the latest baffling move, a US official announced Monday that Trump got Nvidia and AMD to agree to "give the US government 15 percent of revenue from sales to China of advanced computer chips," Reuters reported. Those chips, about 20 policymakers and national security experts recently warned Trump, could be used to fuel China's frontier AI, which seemingly poses an even greater national security risk.

Trump’s “wild” deal with US chip firms

Reuters granted two officials anonymity to discuss Trump's deal with US chipmakers, because details have yet to be made public. Requiring US firms to pay for sales in China is an "unusual" move for a president, Reuters noted, and the Trump administration has yet to say what exactly it plans to do with the money.

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Source: Ars Technica

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