How Big Tech is paying its way out of Trump's tariffs

Top tech executives are astatine the forefront of a caller swathe of unprecedented deals with U.S. President Donald Trump.

In conscionable the past fewer days, the White House confirmed that 2 U.S. chipmakers, Nvidia and AMD, would beryllium allowed to merchantability precocious chips to China successful speech for the U.S. authorities receiving a 15% chopped of their revenues successful the Asian country.

Apple CEO Tim Cook, meanwhile, precocious announced plans to summation the firm's U.S. concern committedness to $600 cardinal implicit the adjacent 4 years. The determination was widely seen arsenic a bid to get the tech elephantine retired of Trump's crosshairs connected tariffs — and appears to person worked for now.

Altogether, analysts accidental the deals amusement conscionable however important it is for the world's largest companies to find immoderate tariff relief.

"The flurry of deal-making is an effort to unafraid lighter attraction from tariffs," Paolo Pescatore, exertion expert astatine PP Foresight, told CNBC by email.

"In immoderate signifier oregon form, each of the large tech companies person been negatively impacted by tariffs. They tin sick spend to fork retired connected millions of dollars successful further fees that volition further dent profits arsenic underlined by caller quarterly earnings," Pescatore said.

While the devil volition beryllium successful the item of these agreements, Pescatore said that Apple starring the mode with its accelerated U.S. concern volition apt trigger "a domino effect" wrong the industry.

Apple, for its part, has agelong been regarded arsenic 1 of the Big Tech firms astir susceptible to simmering commercialized tensions betwixt the U.S. and China.

Earlier this month, Trump announced plans to enforce a 100% tariff connected imports of semiconductors and chips, albeit with an exemption for firms that are "building successful the United States."

Apple, which relies connected hundreds of antithetic chips for its devices and incurred $800 million successful tariff costs successful the June quarter, is among the firms exempt from the projected tariffs.

The Nvidia and AMD woody with the Trump medication has meantime sparked aggravated statement implicit the imaginable interaction connected the spot giants' businesses and whether the U.S. authorities whitethorn question retired akin agreements with different firms.

Some strategists described the statement arsenic a "shakedown," portion others suggested it whitethorn adjacent beryllium unconstitutional and comparing it to a taxation connected exports.

White House Spokesperson Karoline Leavitt said Tuesday that the legality and mechanics of the 15% export taxation connected Nvidia and AMD were "still being ironed out." She besides hinted deals of this benignant could grow to different companies successful future.

Ray Wang, laminitis and president of Constellation Research, described the Nvidia and AMD woody to wage 15% of China spot income revenues to the U.S. authorities arsenic "bizarre."

Speaking to CNBC's "Squawk Box" connected Monday, Wang said what is "really weird" is determination is inactive immoderate uncertainty implicit whether these chips correspond a nationalist information issue.

"If the reply is no, good OK. The authorities is taking a chopped retired of it," Wang said. "Both Nvidia's Jensen Huang and Lisa Su astatine AMD some decided that OK, we've got a mode to get our chips into China and possibly determination is thing bully coming retired of it."

While investors initially welcomed the woody arsenic broadly affirmative for some Nvidia and AMD, which erstwhile much unafraid entree to the Chinese market, Wang said immoderate successful the manufacture volition nevertheless beryllium concerned.

"As an investor, you're disquieted due to the fact that then, is this an arbitrary determination by the government? Does each president get to play kingmaker successful presumption of these deals?" Wang said.

"So, I deliberation that's truly what the interest is, and we inactive person further tariffs and commercialized deals to travel from the China negotiations," helium added.

Looking ahead, Dan Niles, laminitis and portfolio manager astatine Niles Investment Management, said the question for investors is whether the Trump administration's "hands-on" attack is affirmative oregon antagonistic for U.S. companies.

"I deliberation for each company, it is precise different. So, it surely it is thing I instrumentality into account. The bigger happening for maine is bash you person immoderate stableness of policy? Do you person a argumentation 1 week and past it flips the next?" Niles told CNBC's "Closing Bell: Overtime" connected Monday. "Right now, that is what concerns maine a small spot more."

— CNBC's Arjun Kharpal & Kif Leswing contributed to this report.