Export Deal Faces Constitutional Questions

Fortune examines a 15 percent revenue sharing plan with Nvidia and AMD on China chip sales and the constitutional questions it raises.

Export Deal Tests Constitutional Bounds in US Chip Policy

Fortune reports that the United States is weighing a 15% revenue-sharing arrangement with Nvidia and AMD for chip sales to China. Treasury Secretary Scott Bessent called the move a beta test that could extend to other industries if successful. The policy arrives as tariffs provide revenue to counter the growth of the national debt, a trend noted by budget watchdogs. A central legal question is whether export taxes are compatible with the export clause of the Constitution, which bars taxes on goods exported from a state. Past Supreme Court cases in the 1990s, such as US v IBM and US v United States Shoe Corp, favored business in export-tax disputes, but those rulings date from decades ago and the current court could interpret executive power differently. As Beijing and Washington recalibrate export rules in a volatile policy environment, the future of this approach remains uncertain. Business leaders, investors, and policymakers will be watching legal challenges and practical effects on costs and competitiveness as the policy unfolds.

The proposal sits at a tricky crossroads of national security, fiscal policy, and constitutional limits. If challenged, the courts could redefine how far the executive branch can push export measures to influence markets. The potential spread to other industries would raise questions about predictability for business planning and the long-term role of export controls in government strategy. In a broader sense, the policy mirrors a larger trend where global tensions shape domestic policy tools, making legal clarity essential for firms navigating cross-border growth.

Highlights

The coming months will reveal how far constitutional limits can bend under policy pressure.