
Trump's Mic Drop on Nvidia: The Controversial Microchip Deal Explained
2025-08-12
Author: Kai
In a dramatic twist for the tech world, former President Donald Trump's administration struck a bewildering deal with chip giants Nvidia and AMD, allowing them to sell microchips in China while imposing a hefty 15% revenue cut. This controversial move, generating a cool $2 billion for the government, has raised eyebrows and stirred speculation about the real motives behind these negotiations.
Back in April, as America faced escalating tensions with China, the AI industry was gripping with uncertainty over possible tariffs on microchips. Companies like Nvidia, primarily dependent on Taiwanese production, feared skyrocketing costs and plunging stock prices if Trump's tariffs came crashing down. Ironically, while Trump’s White House seemed oblivious to the chaos it caused, tech lobbyists were scrambling for clarity.
Fast forward to last week, where Trump tossed a proverbial grenade: any imported microchip would face an outrageous 100% tariff unless the companies committed to manufacturing within U.S. borders. But here’s the kicker: Apple, with a staggering $100 billion pledge to move production stateside, was off the hook. Amidst all this confusion, a troubling question arises: if the Trump administration genuinely feared a technological threat from China, why allow Nvidia and AMD to freely sell to them?
The unsettling reality might be that Trump’s negotiation tactics resonate with his early business days: backing out of deals, leaving the other party in a lurch, and returning to the table only for greater concessions. Nvidia and AMD seem to have navigated this treacherous landscape the hard way.
But Trump’s questionable financial strategies don’t end there. Investigative reports reveal a pattern of exploiting the middle and lower classes, ranging from Trump University to unauthorized merchandise sales. In a striking turn of events, the Trump Organization is now filing lawsuits against sellers of unauthorized Trump merch—without them even knowing they are being sued until funds vanishes from their accounts.
As the tech and political landscape continue to intertwine in fascinating ways, one thing is evident: the ramifications of Trump’s dealings will be felt far beyond the stock market, especially for everyday consumers caught in the whirlwind of tariffs and legal disputes. Stay tuned as this saga unfolds!