The U.S. plans to use revenue from a levy on NVIDIA H20 and AMD chip sales in China to cut national debt, aiming for secure and fair trade while boosting NVIDIA’s market position.
© A. Krivonosov
The U.S. Treasury Department has announced that the Trump administration intends to channel revenue from a commission on the sale of NVIDIA H20 and AMD chips in China toward reducing the national debt. Treasury Secretary Scott Bessent noted that the idea for this levy came directly from the president and could eventually be expanded to other industries.
The fee applies exclusively to NVIDIA H20 GPUs — hardware that is not considered cutting-edge — which, according to Bessent, removes any potential national security concerns. He added that the arrangement could also work in NVIDIA’s favor, helping the company strengthen its foothold in the Chinese market, while ensuring that U.S. taxpayers share in the profits.
Bessent stressed that the move was not about exercising control over private enterprise, but rather about shifting from what he called «unconditional trade» to a model that is «secure and fair.» The underlying aim, he explained, is to prevent the rise of Chinese technologies comparable to Huawei’s «Digital Silk Road» project.
Meanwhile, Chinese media reports suggest that Beijing has voiced concerns about potential backdoors and tracking capabilities in the H20 chips, advising local firms not to rely on them. Bessent interpreted this reaction as a sign that NVIDIA could become the de facto standard even within the Chinese market.