Trump Bid For Cut in Chip Revenues Runs Afoul of the Constitution: Experts

The revenue-for-exports deal between the U.S. government and two of the world’s biggest chipmakers opens a new front in a trading regime upended by Donald Trump, Katia Dmitrieva and Philip J. Heijmans reported for Bloomberg News.

Nvidia’s H20 AI accelerator and AMD’s MI308 were previously banned by the Trump administration and require export licenses for sale. (Photo: AMD)

Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay the U.S. government 15% of revenue from certain chip sales to China.

The chips — Nvidia’s H20 AI accelerator and AMD’s MI308 — were previously banned by the Trump administration and require export licenses for sale.

“To call this unusual or unprecedented would be a staggering understatement,” said Stephen Olson, a former U.S. trade negotiator now with the Singapore-based ISEAS–Yusof Ishak Institute.

“What we are seeing is, in effect, the monetization of U.S. trade policy in which U.S. companies must pay the U.S. government for permission to export. If that’s the case, we’ve entered into a new and dangerous world.”

Trade experts said the chip-payment arrangement could face legal challenges because it may be construed as an export tax, which is prohibited under the Constitution.

The proposal is the latest direct government intervention in business and finance since Trump returned to the Oval Office in January.

Alongside a chaotic tariff campaign and persistent criticism of the Federal Reserve chair, Trump has used his Truth Social platform for everything from calling on CEOs to resign to commenting on corporate advertising campaigns.

Japan, South Korea, and the European Union have pledged to invest billions in the U.S., securing tariff rates of 15%, while companies such as Apple Inc. have skirted levies by promising to invest hundreds of billions of dollars.

The Nvidia and AMD revenue-sharing deals may now prompt the White House to target other industries and goods, according to Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore.