Big Tech firms are facing increasing pressure to avoid US tariffs, prompting them to strike commercial deals offering 'discounts' in exchange for domestic investments. Nvidia and Advanced Micro Devices have announced selling advanced chips to China in return for a 15% reduction in US government revenue in that country. Simultaneously, Apple has doubled its investment commitment in the United States to $600 billion over the next four years, including expanding local supply chains.

These moves are a response to Trump's protectionist policy aimed at safeguarding American companies and boosting domestic production. However, these agreements have sparked controversy, with some calling them a "squabble" and potentially unconstitutional, while others deem them necessary to avoid the negative impacts of tariffs on corporate profits. Analysts anticipate that Apple's increased investments in the US will trigger a "domino effect" in the industry, with the US government potentially seeking similar deals with other companies.

Investors are concerned about the potential impact of these agreements on chip firms' operations and their access to the Chinese market, although some believe these moves secure access to the Chinese market. The White House spokesperson has hinted that such deals could extend to other companies in the future, indicating a broader US strategy to reshape global supply chains.

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