The Trump administration's novel 15% revenue-sharing arrangement with Nvidia and AMD on chip exports to China has sparked debate over its legality under the U.S. Constitution's export clause, which prohibits taxes on goods leaving states. While Treasury Secretary Scott Bessent views the deal as a potential model for other industries, legal experts highlight past Supreme Court rulings that blocked similar fees. The arrangement represents an unprecedented approach amid ongoing U.S.-China trade tensions, raising questions about executive authority and trade strategy going forward.
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