White House Confirms 15% Export Tax on Nvidia and AMD, Possible Expansion to Other Companies
The U.S. administration is deliberating over the implementation details of a proposed 15% export tax on tech giants Nvidia and AMD, with potential expansion to other companies in the future, according to White House spokesperson Karoline Leavitt.
During a press briefing on Tuesday, Leavitt stated, “Currently, this levy is applicable to these two corporations. However, there’s a possibility that it could extend to additional companies down the line.”
The legality and practicality of the measure are still under review by the Department of Commerce, with Leavitt advising interested parties to seek further details from the department regarding implementation specifics.
Last Monday, President Donald Trump announced a deal with Nvidia whereby the U.S. government would approve export licenses for the China-specific H20 AI chip in exchange for a 15% share of revenue. AMD also received license approval, contingent upon a proportion of its Chinese sales, as confirmed by the White House.
Trump explained during the announcement that he demanded this cut from the companies as a condition for granting export licenses, stating, “I said, ‘If I’m going to do that, I want you to pay us as a country something, because I’m giving you a release.'”
Nvidia released a statement affirming compliance with U.S. government guidelines in participating in global markets. Trump subsequently confirmed the deal for AMD and Nvidia, although legal experts have expressed concerns over its complexity due to existing regulations governing government fees for export licenses.
The Commerce Department declined to comment immediately on the matter.
Nvidia’s H20 chip, designed specifically for the Chinese market and intentionally slowed down to comply with U.S. export regulations, is related to the H100 and H200 chips used in the U.S. It was introduced following the Biden administration’s imposition of export controls on AI chips in 2023.
Earlier this year, Nvidia projected sales of over $8 billion worth of H20 chips in a single quarter before the Trump administration announced in April that an export license would be required to distribute the chip. Trump indicated in July his intention to approve the export licenses following a visit by Nvidia CEO Jensen Huang to the White House.
The U.S. regulates AI chips like those produced by Nvidia for national security reasons, citing potential use by the Chinese government to surpass American AI capabilities or by the Chinese military and affiliated groups.
Recently, the Chinese government has been encouraging domestic companies to avoid utilizing Nvidia’s H20 chips for any government or national security-related projects, according to a report published by Bloomberg on Tuesday.