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Lutnick Draws Red Line: "Great American Companies" Shouldn't Use Chinese Memory Chips

Zero Rss
1 month 4 weeks ago
Lutnick Draws Red Line: "Great American Companies" Shouldn't Use Chinese Memory Chips

One week after The Wall Street Journal reported that Tim Cook's Apple was testing memory chips from China's CXMT, a company blacklisted by the Pentagon over alleged ties to the People's Liberation Army, the outlet published a follow-up story with an interview with Commerce Secretary Howard Lutnick, who publicly urged Apple not to proceed. The standoff comes as the AI data-center buildout absorbs global memory supplies, driving prices sharply higher and forcing consumer-electronics manufacturers to explore alternative sources.

"The Trump administration is not in favor of that," Lutnick said in an interview after touring a new Apple manufacturing plant in Houston, Texas. There have to be "other solutions to the memory issue, but it's not great American companies using Chinese memory."

Lutnick said he has told Apple "plainly" that US tech giants shouldn't use Chinese memory. Apple has tested chips from CXMT and Yangtze Memory Technologies for potential use in devices sold in China, though Chief Operating Officer Sabih Khan declined to comment on the trials, saying her team must examine "all options."

Apple can buy standardized Chinese memory chips without government approval, but customized components could require licenses.

As we've covered, the iPhone maker has been waging a lobbying campaign to secure the White House's blessing to ease the financial pressure from soaring memory-chip prices. A recent FT report said Apple approached the Commerce Department earlier this summer about procuring Chinese memory chips.

Related:

But Lutnick's comments to the WSJ make clear that the White House has, at least for now, withheld that blessing.

Meanwhile, Micron Technology and US senators from states benefiting from planned US memory investments are lobbying the administration to block US tech giants from procuring Chinese memory chips, warning that doing so would undermine domestic production and national security.

The WSJ previously reported that other device companies are also seeking supplies from CXMT:

Laptop makers HP and Acer have started using memory chips from CXMT in devices sold outside the U.S. to alleviate some of the memory supply strain, people familiar with the matter said.

Back to the Lutnick interview from Friday, the outlet reported:

Even so, Lutnick, who is spearheading the administration's plan to increase domestic chipmaking, said the administration continued to press Apple to bring more production to the U.S. 

"Relentlessly, more and more and more," he said, describing the pressure. "They've built their supply chains on low-cost labor. And now they need to build a supply chain on advanced manufacturing. Can Apple do it? Of course they can." 

"You're going to see step by step, and piece by piece, they're going to bring significant portions of their business home," Lutnick said. 

Most of Apple's supply chain is in Asia, and the company has been working with contract manufacturers to build new iPhone assembly plants in India.

Asked if Apple has any plans to bring iPhone production to the U.S., Khan pointed to efforts the company has already made, including commitments to spend tens of billions of dollars on made-in-USA chips for iPhones, as well as adding an assembly line for Apple's popular Mac Mini desktop computer in Texas. He also said Apple was focused on helping chip manufacturers reshore their supply chain end to end.

To sum up, Apple does not appear to have the White House's blessing to use Chinese memory chips, leaving the company with fewer options to offset soaring component costs and signaling continued upward pressure on product prices.

Tyler Durden Sat, 08/15/2026 - 12:15
Tyler Durden

The Gold Tax Surprise: When Gold Profits Get Taxed At 28 Percent

Zero Rss
1 month 4 weeks ago
The Gold Tax Surprise: When Gold Profits Get Taxed At 28 Percent

Authored by Adam H. Douglas via The Epoch Times,

If you bought gold during its 2023-2026 rally, you may be sitting on a large profit and a tax rule you have never heard of.

Gold’s tax treatment can surprise investors, especially when selling after a major rally. Nattapon Saisaard/shutterstock

The IRS classifies physical gold, and even the popular bullion-backed gold exchange-traded funds (ETFs), as collectibles, a category shared with art, stamps, and antiques. That classification changes the tax bill when you sell. Most holders discover it at the worst possible moment: after the sale, when nothing can be done.

Here is the rule to understand before you sign anything.

Quick Answer: How Is Gold Taxed When You Sell?

Long-term gains on physical gold and bullion-backed ETFs are taxed as collectibles: at your ordinary income tax rate, capped at a maximum of 28 percent. That cap is the part many investors misunderstand and what a lot of media coverage gets wrong. If you are in the 12 percent bracket, you pay 12 percent, not 28 percent. The 28 percent figure only bites investors whose ordinary rate would otherwise be higher, and it compares unfavorably to the 15 or 20 percent long-term rates on gains on stocks.

Gold held for one year or less generally produces short-term gain taxed at ordinary income rates. State tax and, for some higher-income taxpayers, the 3.8 percent net investment income tax may apply separately. Choosing the year you sell can be a structural advantage, so learn the rules first.

The 28 Percent Rule - The Details

Two important details about the 28 percent rule:

  • It's a ceiling, not a flat rate. Long-term collectibles gains are taxed at whatever your ordinary rate is, up to 28 percent. Many retirees selling in a modest-income year owe far less than the headline rate.
  • It only applies after one year. If you sell gold that was held for a year or less, the gain is short-term, taxed as plain ordinary income with no cap benefit at all. For someone in the 35 percent bracket, selling a month early costs more in tax than if they were to wait another month.

Higher earners should also budget for the 3.8 percent net investment income surtax and any state income tax, which stack on top for gold just as they do for stocks.

The Same 'Gold' Is Taxed Three Different Ways

The ETF row surprises the most people. Funds that hold physical bars in a vault are typically structured as grantor trusts, so the IRS looks straight through the fund wrapper to the metal inside. You never touched a coin, but you are taxed as if you had.

Mining stocks, by contrast, are shares of companies, taxed like any other stock. Gold in a traditional IRA or 401(k) is generally taxed as ordinary income when withdrawn, not at the collectibles rate. Roth treatment differs.

Cost Basis: Where Sellers Save or Lose Thousands

You are taxed on the gain, not the sale price, and the gain depends on your cost basis. Basis generally starts with what you actually paid for the gold, including any dealer premium and applicable acquisition costs, not merely the spot price. A seller who reports only the spot price on the purchase date overpays.

The classic problem arises from coins bought for cash years ago. If you cannot document what you paid, the IRS may treat your basis as zero and tax the entire sale price. Before selling, gather what you can:

  • Dealer invoices and receipts, the gold standard of proof
  • Credit card or bank statements showing the purchase
  • Records of the date acquired, so you can reconstruct the price and premium from that day

Even partial reconstruction beats nothing, and a folder of paperwork assembled before the sale is worth thousands after it.

Inherited Gold and Gifted Gold Are Opposites

These two get confused constantly, and the difference is the whole tax bill. Inherited gold generally receives a stepped-up basis: Your cost resets to the market value on the date of death, and the holding period is automatically long-term, so selling soon after often produces little or no taxable gain.

Gifted gold is the trap. It carries over the giver's original basis and holding period, so if mom hands you coins she bought decades ago, and you sell, you owe tax on all those decades of appreciation. Families deciding whether to give gold now or leave it later should understand they are choosing between those two treatments.

The Deadline You Choose

Almost every other tax rule happens to you on someone else's schedule. This one waits for your signature. You decide the year the gain lands, which means you can sell in a lower-income year, split a large sale across two tax years, or confirm your documentation first.

Knowing the collectibles rule before the sale, rather than after, is the entire game.

FAQs About the Gold Collectibles Tax Rate Does Everyone Pay 28 Percent on Gold Profits?

The 28 percent figure is a maximum, not a flat rate. Long-term gains on gold are taxed at your ordinary income rate, capped at 28 percent, so a seller in the 12 or 22 percent bracket pays that lower rate. The cap only matters for investors whose ordinary rate would exceed 28 percent. Short-term gains, on gold held for a year or less, get no cap at all and are taxed as regular income.

Are Gold ETFs Really Taxed as Collectibles?

The physically backed gold ETFs are taxed as collectibles. ETFs that hold bullion in vaults are generally structured as grantor trusts, so shareholders are treated as owning a slice of the metal itself, and long-term gains face the collectibles rate of up to 28 percent. Funds that hold mining stocks are taxed as ordinary equity funds at 15 or 20 percent. Check the fund's tax documentation before assuming, because the ticker alone does not tell you.

What If I Have No Receipts for Gold I Bought in Cash?

Act before you sell. Search for any payment records, dealer correspondence, or notes establishing when you bought your gold, then reconstruct the price and typical premium from that date. Documented partial basis is far better than none, because without any support, the IRS can treat your basis as zero and tax the full sale amount. For large holdings, a tax professional can help you build a defensible basis file.

Does the IRS Know When I Sell Gold?

Form 1099-B reporting depends on the transaction, the dealer's status as a broker, the form of the metal, and applicable quantity thresholds. Current IRS instructions provide exceptions for many precious-metals sales, including transactions below the minimum quantity required for a CFTC-approved regulated futures contract (CFTC stands for the Commodity Futures Trading Commission); related sales within 24 hours, however, may be aggregated. Regardless of whether a Form 1099-B is issued, you must report a taxable gain or loss.

Tyler Durden Sat, 08/15/2026 - 11:40
Tyler Durden

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