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Straits Times
2 hours ago
- Business
- Straits Times
Trump bid for cut of Nvidia, AMD chip revenue risks ‘dangerous world'
The Nvidia and AMD revenue-sharing deals could prompt the Trump administration to target other industries and goods. Hong Kong - The revenue-for-exports deal between the US government and two of the world's biggest chipmakers opens a new front in a trading regime turned upside down by Presdient Donald Trump. Nvidia and Advanced Micro Devices (AMD) agreed to pay the US government 15 per cent of revenue from some chip sales to China. The chips – Nvidia's H20 AI accelerator and AMD's MI308 chips – were earlier banned by the Trump administration and require export licences to sell. 'To call this unusual or unprecedented would be a staggering understatement,' said Stephen Olson, a former US trade negotiator now with the Singapore-based ISEA – Yusof Ishak Institute. 'What we are seeing is in effect the monetisation of US trade policy in which US companies must pay the US government for permission to export. If that's the case, we've entered into a new and dangerous world.' The chip-payment arrangement may face legal challenges because it could be construed as an export tax, something that's not allowed under the constitution, trade experts said. The proposal is the latest direct government intervention into business and finance since Mr Trump returned to the Oval Office in January. As well as a chaotic tariff campaign and persistent criticism of a sitting Federal Reserve chairman, Mr Trump has used his Truth Social platform for everything from calling on CEOs to resign to offering commentary on corporate advertising campaigns. Mr Trump's transactional policy approach saw him approve the sale of United States Steel Corp. to Japan's Nippon Steel in a US$14.1 billion (S$18 billion) deal that included caveats such as agreeing to US national security rules and a 'golden share' for the US government. Japan, South Korea and the European Union all pledged to invest billions in the United States, helping secure tariff rates of 15 per cent, while companies such as Apple have also 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. Top stories Swipe. Select. Stay informed. World Trump signs order extending China tariff truce by 90 days, White House says World Trump seizes control of Washington police, deploys National Guard Opinion For Singapore, the AI revolution is coming just in time Asia Death of student in Sabah raises hurdle for Malaysian PM Anwar as he faces tough state polls soon Opinion Sumiko at 61: Hearing loss is linked to dementia risk. Here's what you risk by ignoring it Business S'pore start-up among 5 global picks for Japan construction group Kajima's mentorship and funding Business Lower-wage retail workers to receive up to 6% pay bump from Sept 1 Singapore ST Explains: Who owns Simba, the company that is buying M1? 'The sky is the limit,' she said. 'You could come up with all sorts of company-specific, country-specific combinations that would say, 'No one else can trade, but if you pay us directly, then you get the ability to trade.'' The Trump administration is already in the midst of a lawsuit related to his use of the International Emergency Economic Powers Act to levy what he called 'reciprocal' tariffs on the world. On Aug 8, Trump warned of a 'GREAT DEPRESSION' if US courts ruled that his tariffs were illegal. Chips are at the heart of the US-China battle to dominate industries of the future such as AI and automation. The Biden administration restricted the sale of advanced chips to China, prompting Nvidia to develop the H20, which skirted such restrictions. Trump administration officials tightened export controls in April by barring Nvidia from selling the chips without a permit. In July, however, the White House decided to allow Nvidia and AMD to resume sales of chips designed specifically for the Chinese market, which are several rungs below the most advanced artificial intelligence accelerators. US Commerce Secretary Howard Lutnick said the administration wanted Chinese developers 'addicted' to American technology. China has grown increasingly hostile to the idea of Chinese firms deploying the H20, particularly after the US called for the chips to be installed with tracking technology to better enforce export controls. Yuyuantantian, a social media account affiliated with state-run China Central Television that regularly signals Beijing's thinking about trade, on Sunday slammed the chip's supposed security vulnerabilities and inefficiency. Still, Chinese companies could use the H20s because domestic firms can't produce enough AI chips to meet demand. That potentially provides an opportunity for Nvidia and AMD to sell more – and now for the US government to earn additional revenue as well. Mr Trump on Aug 11 signed an order extending a 90-day tariff truce between the US and China, which was set to expire on Aug 12, by another 90 days. This staves off triple-digit duties on Chinese goods as US retailers prepared for the critical end-of-year holiday season. 'There's clearly a shift by the administration to take a lighter national security stance as these negotiations are ongoing,' said Drew DeLong, lead in geopolitical dynamics practice at Kearney, a global strategy and management consulting firm. While the US has intervened before, including by taking stakes in private companies after the 2008 financial crisis, a similar deal like the one struck with Nvidia and AMD is hard to remember and – without proper oversight – could lead to a 'crony capitalism state,' according to Scott Kennedy, senior adviser at the Center for Strategic and International Studies in Washington. 'It represents a huge shift in the way the American economy is supposed to operate,' Mr Kennedy said. 'It won't make anyone happy except maybe the Chinese, who will get their chips and watch the US political system go through gyration and domestic tensions.' REUTERS
Time of India
01-08-2025
- Business
- Time of India
Taiwan to seek lower tariff after Trump's 'temporary' 20% levy
Taiwan vowed on Friday to seek a lower tariff after Donald Trump imposed a "temporary" 20 percent levy on its shipments to the United States as part of his trade war. The US president's announcement was part of a sweep of measures -- reaching 41 percent -- against dozens of global partners as they scrambled for deals with Washington to avert the painful tolls. Explore courses from Top Institutes in Please select course: Select a Course Category Artificial Intelligence others Leadership Management Design Thinking Technology healthcare MBA Public Policy Healthcare Project Management Digital Marketing Data Science Data Analytics Data Science Degree PGDM Operations Management MCA Cybersecurity Product Management CXO Others Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details The figure is down from the 32 percent toll imposed in his April 2 "Liberation Day", since when Taipei and Washington have held four rounds of face-to-face talks and multiple video conferences to resolve the issue. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3BHK Transformation Possible for ₹4.5 Lakh? HomeLane Get Quote Undo On Friday Taiwan President Lai Ching-te said on Facebook they were still working to strike an agreement "The US has announced a temporary 20 percent tariff for Taiwan, with the possibility of further reductions should an agreement be reached," he wrote. Live Events "The government will continue to strive for a reasonable tariff rate and complete the final stages of the tariff negotiations." While Trump had set Friday as the deadline for agreements to be made, he delayed it until the end of next week. No timeline was given for Taiwan, which could mean the island was caught in the middle of US-China trade negotiations, said Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis. Washington and Beijing held two days of talks this week aimed at reaching a deal to extend a truce in their trade war and prevent the reimposition of sky-high tariffs on August 12. "The conditions on Taiwan might be relevant for China, imagine export controls," Garcia-Herrero told AFP. After US tech giant Nvidia announced it will resume sales of its H20 AI chips to China, Garcia-Herrero said "there could be other stuff that China needs from Taiwan that the US can offer". 'This is the ceiling' Taiwan is a global powerhouse in chip manufacturing, with more than half the world's semiconductors and nearly all of the high-end ones made there. The owner of a Taiwanese machinery exporter to the United States said he was worried that lower tariff rates on Japan and South Korea -- 15 percent -- would advantage his competitors there. He told AFP the recent appreciation in the Taiwan dollar against the greenback had also "put a lot of pressure on us, creating a double whammy". The uncertainty over tariffs was hurting US sales, said textile producer Eddie Wang, with clients "feeling overwhelmed" and reluctant to place orders. Soaring demand for AI-related technology has fuelled Taiwan's trade surplus with the United States -- and put it in Trump's crosshairs. Around 60 percent of Taiwan's exports to the United States are information and communications technology, which includes chips. In a bid to avoid the tariffs, Taipei has pledged to increase investment in the United States, buy more of its energy and increase its own defence spending. Economist Sun Ming-te said the 20 percent levy was "probably the best outcome Taiwan can achieve with the US under the current conditions." "This is the ceiling, and it can go lower in the future," Sun, from the Taiwan Institute of Economic Research, told AFP.
Qatar Tribune
28-07-2025
- Business
- Qatar Tribune
Global supply chains brace as US, China seek to avert escalation
Agencies Top US and Chinese economic officials resumed talks in Stockholm on Monday to resolve longstanding economic disputes at the center of a trade war between the world's top two economies, aiming to extend a truce by three months. US Treasury Chief Scott Bessent was part of a US negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon. China's Vice Premier He Lifeng was also seen at the venue on video footage. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Trump touched on the talks during a wide-ranging press conference with British Prime Minister Keir Starmer in Scotland. 'I'd love to see China open up their country. So we're dealing with China right now as we speak,' Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. US Trade Representative Jamieson Greer said he did not expect 'some kind of enormous breakthrough today' at the talks in Stockholm that he was attending. 'What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward,' he told CNBC. The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15 percent tariff on most EU goods exports to the United States. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. An extension would facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. The Financial Times reported on Monday that the US had paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support Trump's efforts to secure a meeting with Xi this year. Meanwhile, in Washington, US senators from both major parties plan to introduce bills this week targeting China over its treatment of minority groups, dissidents, and Taiwan, emphasizing security and human rights, which could complicate talks in Stockholm. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. 'Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place,' said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington
Nikkei Asia
28-07-2025
- Business
- Nikkei Asia
US, China to resume trade talks Tuesday, eyeing tariffs and Trump-Xi summit
STOCKHOLM (Reuters) -- Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the center of a trade war between the world's top two economies, seeking to extend a truce by three months. U.S. Treasury Chief Scott Bessent was part of a U.S. negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon. Chinese Vice Premier He Lifeng was also seen at the venue on video footage. China is facing an Aug. 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Negotiators from the two sides were seen exiting the office around 8 p.m. and did not stop to speak with reporters. The discussions are expected to resume on Tuesday. Trump touched on the talks during a wide-ranging press conference with British Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country," Trump said. Without an agreement, global supply chains could face renewed turmoil from U.S. duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. U.S. Trade Representative Jamieson Greer said he did not expect "some kind of enormous breakthrough today" at the talks in Stockholm that he was attending. "What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward," he told CNBC. The Stockholm talks follow Trump's biggest trade deal yet, with the European Union on Sunday for a 15% tariff on most EU goods exports to the United States. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. An extension would facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. The Financial Times reported on Monday that the U.S. had paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support Trump's efforts to secure a meeting with Xi this year. Meanwhile, in Washington, U.S. senators from both major parties plan to introduce bills this week targeting China over its treatment of minority groups, dissidents and Taiwan, emphasizing security and human rights, which could complicate talks in Stockholm. Previous U.S.-China trade talks in Geneva and London in May and June focused on bringing U.S. and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include U.S. complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that U.S. national security export controls on tech goods seek to stunt Chinese growth. "Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption -- a decades-long goal for U.S. policymakers. Analysts say the U.S.-China negotiations are far more complex than those with other Asian countries and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on U.S. industries.
The Advertiser
28-07-2025
- Business
- The Advertiser
US, China hold new talks on tariff truce in Sweden
Top United States and Chinese economic officials have resumed talks in Stockholm to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months. US Treasury Chief Scott Bessent was part of a negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon on Monday. China's Vice Premier He Lifeng was also seen at the venue on video footage. China is facing an August 12 deadline to reach a durable tariff agreement with US President Donald Trump's administration, after China and the US reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Trump touched on the talks during a wide-ranging press conference with UK Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country. So we're dealing with China right now as we speak," Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. US Trade Representative Jamieson Greer said he did not expect "some kind of enormous breakthrough today" at the talks in Stockholm that he was attending. "What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward," he told CNBC. The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the United States. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. An extension would facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. The Financial Times reported on Monday that the US had paused curbs on tech exports to China to avoid disrupting trade talks with Chinese officials and support Trump's efforts to secure a meeting with Xi this year. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Chinese complaints that US national security export controls on tech goods seek to stunt Chinese growth. Top United States and Chinese economic officials have resumed talks in Stockholm to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months. US Treasury Chief Scott Bessent was part of a negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon on Monday. China's Vice Premier He Lifeng was also seen at the venue on video footage. China is facing an August 12 deadline to reach a durable tariff agreement with US President Donald Trump's administration, after China and the US reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Trump touched on the talks during a wide-ranging press conference with UK Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country. So we're dealing with China right now as we speak," Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. US Trade Representative Jamieson Greer said he did not expect "some kind of enormous breakthrough today" at the talks in Stockholm that he was attending. "What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward," he told CNBC. The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the United States. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. An extension would facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. The Financial Times reported on Monday that the US had paused curbs on tech exports to China to avoid disrupting trade talks with Chinese officials and support Trump's efforts to secure a meeting with Xi this year. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Chinese complaints that US national security export controls on tech goods seek to stunt Chinese growth. Top United States and Chinese economic officials have resumed talks in Stockholm to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months. US Treasury Chief Scott Bessent was part of a negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon on Monday. China's Vice Premier He Lifeng was also seen at the venue on video footage. China is facing an August 12 deadline to reach a durable tariff agreement with US President Donald Trump's administration, after China and the US reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Trump touched on the talks during a wide-ranging press conference with UK Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country. So we're dealing with China right now as we speak," Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. US Trade Representative Jamieson Greer said he did not expect "some kind of enormous breakthrough today" at the talks in Stockholm that he was attending. "What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward," he told CNBC. The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the United States. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. An extension would facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. The Financial Times reported on Monday that the US had paused curbs on tech exports to China to avoid disrupting trade talks with Chinese officials and support Trump's efforts to secure a meeting with Xi this year. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Chinese complaints that US national security export controls on tech goods seek to stunt Chinese growth. Top United States and Chinese economic officials have resumed talks in Stockholm to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months. US Treasury Chief Scott Bessent was part of a negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon on Monday. China's Vice Premier He Lifeng was also seen at the venue on video footage. China is facing an August 12 deadline to reach a durable tariff agreement with US President Donald Trump's administration, after China and the US reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Trump touched on the talks during a wide-ranging press conference with UK Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country. So we're dealing with China right now as we speak," Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. US Trade Representative Jamieson Greer said he did not expect "some kind of enormous breakthrough today" at the talks in Stockholm that he was attending. "What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward," he told CNBC. The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the United States. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. An extension would facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. The Financial Times reported on Monday that the US had paused curbs on tech exports to China to avoid disrupting trade talks with Chinese officials and support Trump's efforts to secure a meeting with Xi this year. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Chinese complaints that US national security export controls on tech goods seek to stunt Chinese growth.
