Mark Cuban Supports Strategic Tariffs, Calls Blanket Measures 'Idiotic'

Mark Cuban supports targeted tariffs for strategic industries, but criticizes blanket tariffs for disproportionately affecting small businesses. He notes that across-the-board tariffs are "idiotic" and calls for precision in trade policy. Cuban previously praised Trump's revenue-sharing agreement with Nvidia and AMD, but warns of the economic impact of tariffs, which could jump to 67% by October.

Nvidia and AMD, two of the world's leading technology conglomerates, have entered into a landmark agreement with the Trump administration. The deal, announced on August 11, 2025, requires these companies to pay 15% of their revenues from sales of chips and semiconductors to China. This novel approach to revenue collection, framed as an export tax, could generate upwards of $3 billion for the U.S. government [1].

Nvidia and AMD's market dominance is underscored by their positions on the Fortune 500 list, ranking 31st and 167th, respectively. Both companies are significant manufacturers of computer chips, a critical component in the artificial intelligence boom. However, the U.S. has traditionally limited the sale of these products to non-U.S. markets, including China, due to national security concerns [1].

The agreement is a result of the Trump administration's initial ban on Nvidia's H20 chips and AMD's MI308 chips to China. The ban, imposed in April, cost Nvidia billions in lost revenue. The new deal, which ties chip exports to specific licenses, allows these companies to resume sales while generating incremental revenue for the U.S. government [1].

Mark Cuban, a prominent businessman and frequent critic of Trump, praised the deal, describing it as a "billionaire's sales tax" and a "progressive dream." Cuban criticized prominent Democrats for not pushing similar revenue measures and highlighted the potential revenue the federal government could receive from the chip sales to China, estimated at $3 billion [2].

While the deal has been praised for its innovative approach to revenue collection, it has also faced criticism. The stock prices of Nvidia and AMD struggled following the announcement due to the high revenue collection rate, which could fall onto Chinese customers. Additionally, the broader implications of this deal remain uncertain, with lawmakers questioning its legality and potential impact on other industries [1].

Cuban has also warned about the economic impact of tariffs, which could jump to 67% by October. He supports targeted tariffs for strategic industries but criticizes blanket tariffs for disproportionately affecting small businesses. Cuban calls for precision in trade policy to minimize negative economic impacts [1].

In conclusion, Nvidia and AMD's export trade deal with the Trump administration represents a novel approach to revenue collection. While the deal has generated praise for its innovative nature, it also faces criticism and uncertainty about its broader implications. As the deal progresses, it will be crucial to monitor its impact on the companies involved and the broader economy.

References:
[1] https://www.forbes.com/sites/nathangoldman/2025/08/11/insider-nvidia-and-amds-3-billion-export-tax-deal-with-trump/
[2] https://san.com/cc/ultimate-wealth-tax-mark-cuban-touts-trumps-nvidia-deal-calls-out-dems/