US to Resume Tariffs on Graphics Cards Assembled in China

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Marees

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The tariffs add a 25% duty on graphics cards, motherboards, and desktop PC cases.


Over the past year, the US Trade Representative (USTR) has delayed restoring the Trump-era tariffs, which added a 25% duty on affected Chinese goods. The goal was to gather feedback from the industry and consider modifications as trade associations lobbied the White House to end the tariffs, citing the costs.

But on Wednesday, the USTR issued a notice, saying it had recommended to the White House that the “tariffs on covered products be maintained.” On Thursday, a spokesperson for USTR then told PCMag: “We are maintaining tariffs on products currently subject to the action, including the two tariffs you’ve inquired about.”

Those tariffs use the codes 8473.30.1180 and 8473.30.5100 and cover graphics cards, motherboards, and desktop PC cases.


So far, the USTR hasn’t officially issued a federal notice to continue the Trump-era tariffs or said what date they’ll resume.

https://www.pcmag.com/news/us-to-re...tent&utm_medium=trueAnthem&utm_source=twitter
 
So they're just going to get pushed until after the election, got it. TBH once either of these old crones wins they'll bring them back.
 
Then it should apply only to the US. I don't know why prices in other Western countries scale-up along with US prices when the US imposes tariffs on China. Seems like a scam.
 
Delicieuxz said:
Then it should apply only to the US. I don't know why prices in other Western countries scale-up along with US prices when the US imposes tariffs on China. Seems like a scam.
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In Canada virtually all electronics get imported through the US ports, so the tariff is applied on landing regardless of where the cards final destination is.
In Canada when the government banned “Tankers” from landing in Vancouver and Montreal they didn’t ban tankers, they banned all freighters above a certain displacement, which also disrupted a shitload of boats from China.
The Canadian government said well they will need newer smaller boats then, like the shippers could go and pick one up from the local Costco or something.
Anyways the shippers diverted the boats to the US ports and truck them in, which is why in Canada we see such a huge markup on the cards over US retail MSRP.
There are also some complications with trade agreements, it’s not unheard of for countries to demand their trading partners also impose the same tariffs they do.

In other news Nvidia has shifted much of their card manufacturing from China to Mexico because of the Chip bans they face. So they may just choose to move more of it and simplify their supply chain more. We could in theory see Blackwell from Nvidia being significantly cheaper than the MSI, Acer, Gigabyte alternatives.
 
Lakados said:
The Canadian government said well they will need newer smaller boats then, like the shippers could go and pick one up from the local Costco or something.
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Confusion between Costco and Cosco strikes again.
 
toast0 said:
Confusion between Costco and Cosco strikes again.
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No in this case I meant Costco, because for some reason Environmental activists don’t seem to understand how expensive freighters are and you just can’t go out and buy one off the shelf, they are ordered years in advance. And frankly Canada isn’t big enough that some company is going to spend Billions of dollars for smaller boats just to land here when they can simply divert a boat a few degrees south and land there instead.
 
Lakados said:
No in this case I meant Costco, because for some reason Environmental activists don’t seem to understand how expensive freighters are and you just can’t go out and buy one off the shelf, they are ordered years in advance. And frankly Canada isn’t big enough that some company is going to spend Billions of dollars for smaller boats just to land here when they can simply divert a boat a few degrees south and land there instead.
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It's not even about buying new boats. The freighters are massive for a reason; it's a hell of a lot cheaper to operate a huge freighter bringing stuff across the ocean than it is running multiple smaller freighters.
 
SmokeRngs said:
It's not even about buying new boats. The freighters are massive for a reason; it's a hell of a lot cheaper to operate a huge freighter bringing stuff across the ocean than it is running multiple smaller freighters.
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Point is the reasoning “they can just use new smaller boats” has so many flaws it’s laughable to the point where they can’t be taken seriously.
 
Lakados said:
In other news Nvidia has shifted much of their card manufacturing from China to Mexico because of the Chip bans they face. So they may just choose to move more of it and simplify their supply chain more. We could in theory see Blackwell from Nvidia being significantly cheaper than the MSI, Acer, Gigabyte alternatives.
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And not just NVidia, I assume. And not just to Mexico.
 
philb2 said:
And not just NVidia, I assume. And not just to Mexico.
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Well when the US placed all those restrictions on Nvidia on what they could sell to China it’s easy to forget that those components are made in China.
Subsequently that means that those components can’t enter China for manufacturing, so Nvidia and their partners had to find alternative locations.
The only company with the expertise, and capacity to meet Nvidia’s needs is Foxconn, and their Mexico facilities.
So back when the US Government was bragging about how they will just keep banning sales to China thinking that would move chip sales to the US, they just moved them to Mexico, because the US manufacturing infrastructure for electronic equipment is horrendously outdated and monstrously under staffed.
 
Lakados said:
in other news Nvidia has shifted much of their card manufacturing from China to Mexico because of the Chip bans they face. So they may just choose to move more of it and simplify their supply chain more. We could in theory see Blackwell from Nvidia being significantly cheaper than the MSI, Acer, Gigabyte alternatives.
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Who makes Nvidia's FE cards? I think Nvidia wouldn't want too big of a gap for the board partners. Unless they plan on gradually phasing them out. Aren't their margins thinning?
 
Flogger23m said:
Who makes Nvidia's FE cards? I think Nvidia wouldn't want too big of a gap for the board partners. Unless they plan on gradually phasing them out. Aren't their margins thinning?
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That just means Nvidia can safely tack a 14-25% to their cards for extra profits, but if their cards are exempt from the tariffs, but say AMD (who still has all their manufacturing in China) isn’t what will that potentially do to margins there.
 
Lakados said:
Well when the US placed all those restrictions on Nvidia on what they could sell to China it’s easy to forget that those components are made in China.
Subsequently that means that those components can’t enter China for manufacturing, so Nvidia and their partners had to find alternative locations.
The only company with the expertise, and capacity to meet Nvidia’s needs is Foxconn, and their Mexico facilities.
So back when the US Government was bragging about how they will just keep banning sales to China thinking that would move chip sales to the US, they just moved them to Mexico, because the US manufacturing infrastructure for electronic equipment is horrendously outdated and monstrously under staffed.
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I’m sure the goal was to move things back to the US, but there is also a broader goal of “friend shoring” the production of vital products away from nations that are hostile to US interests, so Nvidia moving production to Mexico will still be viewed as a win.
 
Not sure why ppl are worried about a few percent added on to cost on things that are a "want" (not "need"), while companies increased prices up to 5 times of what it cost before.
say if a gpu is 500 and im spending another 100, fine, but if same card now costs me 900-1000 to begin with, i wont get it, hence they could have a 100% tariff on it, wouldnt affect me (directly).
 
philb2 said:
No surprise here. I'm guessing that more and more tariffs is the "new normal" for people in the US (and perhaps in the EU.)
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I'm just curious how retailers will behave, will they just slap a 25 percent price increase on everything across the board, or will they wait for current inventory that's already been imported to be sold? I'm guessing the former.
 
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