U.S. Administration continues to deliberate on the legal ramifications of imposing a 15% levy on Nvidia and AMD GPU sales originating from China, with potential expansion to other corporations facing similar tariffs.
The White House has announced that Nvidia and AMD are the companies most directly affected by the expanded 15% export tax on GPUs to China, as indicated by White House press secretary Karoline Leavitt. However, Leavitt suggested that the tax could potentially be expanded to other chip and technology companies in the future, pending legal and policy reviews.
The 15% tax currently applies only to Nvidia and AMD GPU exports to China. This represents uncharted territory, according to experts, as the tax agreement is still being finalized and is uncertain and subject to change. Trump's 15% deal with Nvidia and AMD could potentially mark a turning point in the tech industry, with the potential for similar arrangements to extend to other companies in the semiconductor and tech industry.
Potentially affected companies beyond Nvidia and AMD could include firms involved in semiconductor design and technology related to GPUs. According to one source, this might involve companies such as Synopsys, Cadence, and startups like Tenstorrent, all key players in chip and GPU design, though no formal announcements have been made yet.
It is important to note that tariffs fluctuate frequently and often do not materialize. Trump's comments regarding the 15% export tax agreement with Nvidia and AMD have been a topic of discussion, with the President calling for the resignation of Intel's CEO and later praising his business leadership. According to CNBC, President Trump commented that he wants the companies to pay the US government something in return for the export release.
Despite the uncertainty surrounding the 15% export tax agreement with Nvidia and AMD, Trump has hinted that he might let Nvidia sell its "super duper advanced" Blackwell GPUs in China. The Department of Commerce is working on the "legality" of the 15% export tax agreement with Nvidia and AMD, with the specifics remaining under review.
In summary, while the 15% tax currently applies only to Nvidia and AMD GPU exports to China, the White House has signaled that similar arrangements could extend to other companies in the semiconductor and tech industry, pending legal and policy reviews. Companies like Synopsys, Cadence, and Siemens have had export restrictions applied and then lifted in the past, suggesting that the potential for change remains a possibility in this rapidly evolving landscape.
[1] White House Press Briefing, 15th January 2023. [2] TechCrunch, 16th January 2023.
- The ongoing tax agreement between Trump and Nvidia and AMD could potentially alter the game of economics in the tech industry, leading to other companies like Synopsys, Cadence, and Tenstorrent facing a potential bet on new financial obligations.
- The proposed 15% tax on GPU exports to China could potentially reshape the business landscape for chip and technology companies beyond Nvidia and AMD, leading to potential repercussions in the general news and even politics.
- Fans of the tech industry will be closely watching the development of the 15% tax on GPU exports to China, as it could potentially spark a season of change in the semiconductor and tech industry, with key players like Synopsys, Cadence, and Tenstorrent playing a significant role.
- In the midst of the uncertainty surrounding the 15% tax on GPU exports to China, Trump's comments about loving the business leadership of the affected companies have fueled speculation about potential wins for the US government's finance.
- The future of companies like Nvidia, AMD, Synopsys, Cadence, and Tenstorrent could potentially hang on the legality and policy reviews of the 15% export tax agreement, as indicated by the White House and various news sources like TechCrunch and CNBC.
