The United States aims to negotiate additional agreements akin to those seen in the Nvidia deal.
US Government Introduces Unique Revenue-Sharing Tariff Model
The United States government has introduced a new trade policy, which involves a 15% export revenue-sharing tax on certain high-tech exports. This model is similar to the arrangement already in place with chipmakers Nvidia and AMD, who pay 15% of their revenue from AI chip sales to China directly to the US government in exchange for export licenses.
Under the current model, Nvidia and AMD can export specific AI-focused semiconductor chips to China under US export controls, but a portion of their earnings goes directly to the US Treasury. This revenue is intended to help pay down the US national debt, with the possibility of returning funds to taxpayers if the program proves successful.
Treasury Secretary Scott Bessent described this arrangement as a "unique solution" and a "model" or "beta test" that could be expanded to other industries over time. The administration views it as a new way for the government to insert itself strategically into international trade relations and private-sector exports to critical markets.
However, this approach has drawn criticism for resembling a form of tax or "blackmail" on individual companies to maintain access to foreign markets. The model raises legal and ethical questions about export control and industrial policy.
The agreement, which was discussed on US broadcaster Bloomberg TV by US Treasury Secretary Steven Mnuchin, could potentially generate several billion dollars in earnings for the US government due to high demand for powerful AI chips. The deal reflects President Donald Trump's strategy of linking trade concessions to financial gains for the US.
If successful, this model could be expanded to other industries, according to Mnuchin. This move marks a departure from traditional tariffs and indicates more direct government involvement in corporate revenue sharing, consistent with other Trump administration actions involving government stakes or controls over private firms with international ties.
- The US government might consider implementing employment policies within the technology industry, similar to the revenue-sharing tariff model, as a means to collect funds and invest in community projects or decrease the national debt.
- As the revenue-sharing tariff model gains traction in the technology sector, other industries, such as finance, may potentially adopt employment policies that require a portion of their earnings to be shared with the government, reflecting a broader trend of government intervention in private-sector revenue streams.
