Nvidia, AMD, and Apple navigate tariffs with strategic agreements, reshaping U.S.-China tech landscape
Key Points
-
Nvidia and AMD agree to share 15% of China AI chip sales revenue with the U.S. government to resume exports.
-
Apple secures tariff exemptions by committing to U.S. manufacturing investments, including a new North Carolina campus.
-
The deals reflect Trump’s transactional approach but spark concerns over national security and trade precedent.
Major technology firms like Nvidia, AMD, and Apple are striking unprecedented agreements with President Donald Trump to bypass his administration’s tariffs, ensuring access to global markets while aligning with U.S. economic priorities.
Tech’s Tariff Strategy
Nvidia and AMD’s Revenue Deal
Nvidia and AMD have secured U.S. export licenses to sell AI chips in China by agreeing to pay 15% of their revenue from these sales to the U.S. government, as confirmed by a White House official to the Financial Times. This follows a Trump administration ban on advanced chip exports to China in April 2025, citing national security risks.
The deal, covering Nvidia’s H20 and AMD’s Instinct MI308 chips, allows both companies to tap into China’s lucrative AI market, with Nvidia projecting $12 billion in sales for its fiscal third quarter, up from $8 billion the prior quarter, according to Bernstein Research.
Apple’s Manufacturing Pledge
Apple, facing a 10% tariff on iPhone imports from China, negotiated an exemption by committing to significant U.S. investments. During a July 2025 Mar-a-Lago meeting with Trump, CEO Tim Cook promised to expand Apple’s North Carolina campus and boost domestic job creation. “We’re building America’s future,” Cook said, aligning with Trump’s push for U.S. manufacturing. Unlike Nvidia and AMD, Apple avoids direct revenue-sharing, focusing instead on long-term economic contributions.
Trump’s Deal-Making Playbook
Transactional Trade Policy
Trump’s approach, described as “deal-making on steroids” by trade analyst Wendy Cutler, leverages tariffs as bargaining chips to extract concessions. “It’s not just tariffs; it’s about getting something tangible for the U.S.,” Cutler told CNBC. The Nvidia-AMD deal, initially targeting a 20% revenue cut, settled at 15% after negotiations, as Trump revealed in a Monday press conference.
This strategy echoes his demand for Intel’s CEO resignation over China ties (), showcasing a pattern of direct intervention in corporate decisions.
Corporate Compliance
Tech executives are adapting to Trump’s tactics. Nvidia’s Jensen Huang, after public pushback on export controls costing $5.5 billion, secured the deal to maintain market access. AMD confirmed its export license approval on Monday, with a spokesperson noting compliance with U.S. regulations.
Apple’s Cook, a seasoned negotiator, avoided tariffs by aligning with Trump’s “America First” agenda, a move praised by investors but criticized by some as prioritizing profits over principles.
Market and Policy Impacts
Stock Market Response
The deals have buoyed tech stocks, with Nvidia and AMD gaining 2% and Apple 1.5% in Monday trading, reflecting investor optimism about restored China market access. However, concerns linger about long-term costs. “Paying 15% reduces margins but beats losing the market entirely,” said Wedbush Securities analyst Dan Ives.
Bernstein Research estimates Nvidia could generate $23 billion from H20 sales by year-end, with AMD projecting $800 million, meaning a combined $2 billion-plus for the U.S. Treasury.
National Security Debate
The agreements have sparked debate over national security. Representative Raja Krishnamoorthi, the top Democrat on the House Select Committee on China, called the chip deal a “misuse of export controls,” arguing it prioritizes revenue over security.
Critics on X echo this, labeling the deal a “sell-out” (), while supporters argue it keeps China dependent on U.S. technology. Trump dismissed security concerns, claiming the H20 chip is “not advanced,” though experts warn even downgraded chips could bolster China’s AI capabilities.
Global Implications
China’s Market Dynamics
China, a key market accounting for 13% of Nvidia’s revenue, benefits from access to U.S. chips but faces higher costs due to the 15% levy. Chinese state media, per Reuters, raised concerns about potential U.S. “backdoors” in chips, reflecting distrust. T
he deal could delay China’s push for chip independence, though analysts like George Chen warn it may accelerate domestic AI development, challenging U.S. dominance long-term.
Future Trade Precedents
The agreements signal a shift toward transactional trade policies, potentially affecting other sectors. “If semiconductors are taxed like this, what’s next—software, cloud services?” asked Dan Newman of The Futurum Group. The deals align with Trump’s broader 2025 trade moves, including a tariff truce with China () and a 100% tariff on non-U.S. chips (), raising fears of fragmented global trade. Posts on X highlight mixed sentiments, with some praising the economic boost and others warning of geopolitical risks ().
This article is based on a report by Erin Doherty, published by CNBC on August 13, 2025, updated at 3:47 p.m. EDT. Additional context was drawn from posts on X discussing the deals and their implications.
