USA

‘There’s nothing novel’ about Trump’s deal with Nvidia,AMD

Jim Cramer from CNBC defended President Donald Trump’s agreement with Semiconductor Giants Nvidia And AMD Not necessarily unseen.

“There is nothing new about making a 15% deduction. Trump’s personally not to collect this money … 15% goes directly to the treasury,” he said. He said: “15% deduction in China sales is basically another tariff form, and we have recently received a tone of them, why not this?”

The White House confirmed on Monday, confirming that Nvidia and AMD agreed to give 15% of their income to the US government from sales to China. In contrast, companies will receive licenses to sell certain chips in China. Financial Times Reported. The government had previously tried to prevent this exports, and Nvidia CEO Jensen Huang warned that chip restrictions could cause the US to miss a $ 50 billion AI market in China.

This regulation emerges as the Trump administration continues to develop global trade policy in general for the major technology and the corporate world. Last week, the president slapped 100% tariff for semiconductors and chips – except for companies with “building in the US”.

Cramer said he did not think that the government’s policy was perfect and said, “Here is a definitely controversial game payment element.” However, he argued that the movement of the movement was one of the more “benign” ways of the federal government’s involvement in the business world.

Cramer reflected in cases where the government received shares in companies. The Chrysler investment of 1979 talked about the rescue movement of large banks during the bankruptcy and during the great recession. In both cases, the federal government made a profit.

The Trump administration “intervened where it shouldn’t have, and then changed the route to do the right thing, Crar Cramer said. According to him, the government’s decision to allow chip sales to China is more than 15% of the income.

“Squeeze everything you want, but this chip agreement is good for the taxpayer and is good for Nvidia and AMD,” he said. “If the chip producers don’t complain, why should we do it?”