What CEOs really think about Nvidia and AMD’s China export deal: ‘Brilliant, a tariff that we don’t have to pay’
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August 12, 2025
09:00 AM
Fortune
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s·CEO DailyWhat CEOs really think Nvidia and AMD’s China export deal: ‘Brilliant, a tariff that we don’t have to pay’By Diane BradyBy Diane BradyExecutive Editorial Director, Fortune Media and author of CEO DailyDiane BradyExecutive Editorial Director, Fortune Media and author of CEO DailyDiane Brady is an award-winning journalist and author who has interviewed newsmakers worldwide and often speaks the global landscape
As executive editorial director of the Fortune CEO Initiative, she brings together a growing community of global leaders through conversations, content, and connections
She is also executive editorial director of Fortune Media and interviews newsmakers for the magazine and the CEO Daily .SEE FULL BIO NVIDIA CEO Jensen Huang.In today’s CEO Daily: Diane Brady on Nvidia and AMD’s deals to give the U.S. government a 15% cut of their chip sales to China
The big story: China tariff deal pushed off
Plus: All the news and watercooler chat from Fortune
I called some CEOs yesterday to get their thoughts on Nvidia and AMD’s deal to give the U.S. government a 15% cut of AI chip sales to China to secure export licenses
Most were surprisingly sanguine the unusual arrangement
Corey duBrowa, who is global CEO of communications giant Burson, described the deal as “another novel apach that’s being implemented by the Trump administration as they continue to rewrite trade norms and practices.” A veteran leader in the manufacturing space described the deal as of of Trump’s commitment to American manufacturing, adding that the cost was ly worth it
Another U.S.-based CEO called it “brilliant, a tariff that we don’t have to pay.” But some also raised questions: What does this mean for national security? Such restrictions are designed to address national security concerns, not raise revenue
Governments typically only make money when penalizing those who break the rules
Could financial incentives put security priorities on hold? Allies are historically able to buy military equipment and sensitive nologies that others are not
Could this further erode trust? How will this impact trade deals? Many CEOs believe tariffs are here to stay, as America’s trading partners create their own walled fortresses and blocs
Where will the money go? Export fees and tariffs mean higher costs for U.S. consumers and companies, and higher revenue for the government
Tariffs alone are expected to bring in $50 billion a month
The Nvidia/AMD deals could add another $4 billion to Treasury coffers next year
Will that be used to pay down debt, help consumers, or be spent some other way? CEO Daily via Diane Brady at diane.brady@fortune.comTop newsU.S.-China trade deal pushed back another 90 daysBoth countries will pause tariffs on each other in favor of a 10% levy while negotiations continue
There are signs that President Trump and President Xi Jinping will meet before the deal is signed
The previous deal lowered tariffs from their peak rate of 145% to 30%.Trump’s last-minute demand for Nvidia cashNvidia CEO Jensen Huang had been working for months behind the scenes to create a deal that would allow his company to continue to sell H20 chips to China
The deal included a $500 billion U.S. investment mise and the notion that China would remain dependent on Nvidia’s less powerful chips
And then President Trump demanded money, the WSJ reports.Intel CEO has positive meeting with TrumpLast week, the president demanded the resignation of Intel CEO Lip-Bu Tan because of his history of Chinese investments
Yesterday, Trump called his meeting with the executive “a very interesting one.” “His success and rise is an amazing story,” Trump said
The company said it would work with the White House to “restore this great American company.”President Trump prepares to meet Putin without Europe or UkraineThe meeting will der to Putin exactly what he wants—the visual that the key parties in the negotiations are Moscow and Washington not Kyiv or Brussels.Reality check: There is no sign of imminent peace in UkraineRussian battlefield maneuvers show they are preparing yet more offensives inside Ukraine
Meanwhile, Europe is building for war: Satellite photos show defense facilities have added 7 million square metres of new industrial development at 150 sites in 37 countries, the FT reports.Stifel analysts warn of stagflationAnalysts from investment bank Stifel warn in a new re note that a slowdown in consumer spending and fading effects of COVID-era stimulus have left the U.S. economy vulnerable to stagflation, predicting a selloff of 10% or more in the S&P 500
Despite seemingly strong account balances, underlying weakness and diminishing savings signal that the current market highs are built on a 'money illusion' that may soon dissipate.Moody’s Mark Zandi on tariff revenueMoody’s Chief Economist Mark Zandi believes tariffs will be under intense political pressure to be cut in any recession, making them unreliable as a long-term funding source
Though President Donald Trump’s tariffs are generating revenue for the federal government at an annual rate of $300 billion, most tariff costs are being passed on to consumers as higher prices, acting effectively as a sales tax, according to Zandi.In other news: … Elon Musk threatened to sue Apple for not giving minence to his Grok apps in the App Store … A federal judge declined to release grand jury transcripts from the case against Ghislaine Maxwell, the imprisoned ex-partner of Jeffrey Epstein … Trump appointed E.J
Antoni, chief economist at the Heritage Foundation, to lead the Bureau of Labor Statistics
Antoni is one of the of ject 2025 and a longtime critic of the BLS.The S&P 500 futures were flat this morning, premarket, after the index closed down 0.25% on Friday
STOXX Europe 600 was up 0.26 in early trading
The U.K.’s FTSE 100 was up 0.27% in early trading
Japan’s Nikkei 225 was up 2.15%, hitting a new all-time high
China’s CSI 300 was up 0.52%
The South Korea KOSPI was down 0.53%
India’s Nifty 50 was up 0.17%
Bitcoin declined to $118.9K.Around the watercoolerExclusive: Fin giant Stripe building ‘Tempo’ blockchain with crypto VC Paradigm by Ben Weiss and Leo SchwartzThe new American workplace crisis: Return-to-office mandates lead to a working mom exodus by Ashley LutzOpenAI’s CEO Sam Altman says in 10 years’ time college graduates will be working ‘some completely new, exciting, super well-paid’ job in space by Preston ForeSoutheast Asia’s cities at ‘high risk’ of flooding and heatwaves, thanks to climate change by Lionel LimCEO Daily is compiled and edited by Joey Abrams and Jim Edwards
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