President Donald Trump has realigned global trade and American politics, ushering in a new era in which pay-to-play appears to be the new norm, and every interaction is a chance to score some extra cash — even if it means starting a global trade war or demanding a payout from America’s own industries.
ICYMI: American chipmakers Nvidia and AMD agreed to pay the US government 15% of their revenues from semiconductor sales to China in exchange for export licenses. It’s an unorthodox (and potentially illegal) arrangement which, at minimum, offers Trump a new way to exert even more control over American business.
The companies will now be able to resume selling chips in China, months after Trump blocked all semiconductor sales to the country, citing national security concerns. While that might not have sunk a company as large as Nvidia — which recently became the first public company ever to notch a $4 trillion valuation — it was still a hit to the bottom line. China made up 13% of Nvidia’s sales in 2024, and the company forecast billions in lost revenue if the ban stayed in place.
In exchange, they owe the government a cut of the proceeds. That’s about $5 billion a year going into the Treasury coffers, for Trump to spend as he wishes, according to estimates by analyst Angelo Zino at investment firm CFRA.
While the stock market’s reaction to the news was muted, many investors spoke out against the deal.
