Expiry of Trade Tariff Exception Leads to Price Increases in Computers

Computer enthusiasts are yet again hit by another wave of disappointment as prices for computer components further increase. This is due to Trump’s trade tariff exception on PC components expiring in January. These tariffs can increase costs of Motherboards, Graphics cards, and other components by 7.5% to 25% which will almost certainly be passed on to consumers. Asus has already announced that they are increasing motherboard prices to deal with the tariffs. Many graphics card and motherboard prices have already increased in response to the tariffs. For example, the Asus ROG STRIX AMD RX6800XT now costs $1079.99 instead of its original $899.99.

Although other companies have not said they will do the same, it is almost certain they will follow suit. For those hoping to wait this tariff off, you are not so lucky as there is no definite date these tariffs will end and the Biden administration already established a strong stance on China.However, these tariffs not only hurt consumers and AIBs like ASUS and GIGABYTE, but also hurts Nvidia and AMD. Nvidia, in particular, is already heavily criticized by their AIB partners as Nvidia’s new GPUs require their partners to use costly video memory and cooling systems, significantly cutting into the partner’s revenue. With the tariffs, this problem may make things worse as Nvidia needs to alter their MSRP or GPU die prices for their cards or risk more backlash from AIBs or consumers.

Overall, this has been a terrible time for consumers as computer components are either out of stock or overpriced.

Source: Title Image, from Nvidia.com

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