Biden administration plans to resume Trump tariffs on China-made GPUs and motherboards
Are the prices of GPUs and other PC components on the way up, again?
The US Trade Representative (USTR) recommended to the White House that it maintain tariffs on GPUs, motherboards, and PC cases made in China. This recommendation was issued as "Billing Code 3390-F3" [PDF]. These tariffs will add a 25% duty on the aforementioned Chinese products. And while you may think that you’re not impacted by the news, you're wrong! The import tax applies to all China-made GPUs and motherboards.
The tariffs, along with others were first proposed under former U.S President Trump's term back in 2020. But implementation of these taxes has been delayed by the previous Trump and current administration of U.S President Biden. This has happened several times, including in January of this year. However, it looks like these Chinese-made products will finally get higher taxes, especially with the USTR recommendation.
Even if you buy an Asus or MSI graphics card, they will be hit by the additional import duty as long as the items were assembled in China. This will lead to higher prices for the consumer, especially in the affordable low-end spectrum of the market, where margins are slight, and any additional cost will likely be passed on to the end-user.
While this was just a recommendation from the USTR to the White House, and no formal notice nor resumption date has been announced, the Biden administration has recently announced a doubling of the tariff rate on Chinese semiconductors from 25% to 50%. This does not bode well for PC manufacturers who rely on China’s massive manufacturing capability and established supply chains to deliver their products.
According to PCMag, “the Consumer Technology Association (CTA) has pushed the White House to end the tariffs.” But CTA VP of International Affairs Ed Brzytwa said, “They’re not getting rid of anything. There are only tariff increases.”
This announcement by the USTR is another move in the on-going trade war between the US and China, with technology firmly in the crosshairs of both nations. Aside from tariffs and import duties, the United States has also blocked Chinese access to the latest technologies through sanctions, with the former encouraging its allies to do the same.
China remains adamant that it will develop its own technology despite American roadblocks. The Chinese government released $27 billion dollars to its chipmakers to help them weather the storm of U.S. sanctions. Furthermore, major Chinese tech companies like SMIC remain on track with their revenues and research and development. And although homegrown Chinese CPUs still do not perform as well as modern Intel and AMD chips, they’re quickly learning and their tech advancements are taken in leaps and bounds.
Stay On the Cutting Edge: Get the Tom's Hardware Newsletter
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
The US Presidential Election is coming in November 2024, with Trump seemingly challenging the incumbent Joe Biden. So, these recent tariffs and sanctions against China feels more like a political move to gain popularity among the American people instead of a well-thought-out policy decision. As Brzytwa said, “It seems like there’s a competition between the Republican Party and Democratic Party on who can be tougher on China, and who can be more protectionist.”
Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.
-
peachpuff They want a piece of that ai nvidia gpu money, maybe they should ding those gpus even more.Reply -
FoxtrotMichael-1 One thing this article fails to mention is that China is destabilizing security in the pacific by building islands and aggressively defending international waters as Chinese waters, not to mention supplying the war effort in Ukraine. It actually is good policy to start to separate economically from China. It’s going to be a long process but will prevent the US from much more pain down the road.Reply -
bit_user
It's not in the USTR's remit to worry about government revenues. They're concerned with trade policy and imbalances.peachpuff said:They want a piece of that ai nvidia gpu money, maybe they should ding those gpus even more.w -
Notton PC cases is a weird thing to put tariffs on.Reply
If I want a quality PC case, it's usually designed in a Western country, but manufactured in China.
I would not expect high quality fit and finish, unless it was made in a Chinese factory. -
bit_user
That's a weird thing to say, given that it certainly wasn't true 20 years ago. These things can change rather quickly.Notton said:I would not expect high quality fit and finish, unless it was made in a Chinese factory.
Also, I'm struck by how much high tech & precision manufacturing even happens in a country like Mexico. Are you telling me they can build cars & car parts, but not quality PC cases? -
Notton
Mexico builds reliable cars, yes.bit_user said:That's a weird thing to say, given that it certainly wasn't true 20 years ago. These things can change rather quickly.
Also, I'm struck by how much high tech & precision manufacturing even happens in a country like Mexico. Are you telling me they can build cars & car parts, but not quality PC cases?
USA manufacturing on the other hand...
Tesla and Boeing topping the news on poor build quality.
GM, Ford, and Chrysler... also not confidence inspiring.
If Toyota or Honda made PC cases in North America, I am sure they would build it properly... I doubt it'd be cheap.
edit
Fractal Design and NZXT, for instance, is entirely manufactured in China. -
nookoool FoxtrotMichael-1 said:One thing this article fails to mention is that China is destabilizing security in the pacific by building islands and aggressively defending international waters as Chinese waters, not to mention supplying the war effort in Ukraine. It actually is good policy to start to separate economically from China. It’s going to be a long process but will prevent the US from much more pain down the road.
Isn't these type of discussion pointless in a tech site? A person in China or global south would argue that the US/West the cause of all the worlds problems. -
USAFRet
Manufacturing in the US:Notton said:USA manufacturing on the other hand...
BMWHondaKiaHyundaiSubaruToyota -
Notton
And then there is the parts supplier chain, which can be all over the world.USAFRet said:Manufacturing in the US:
BMWHondaKiaHyundaiSubaruToyota
Kia and Hyundai had to recall more than 600,000 vehicles due to fire risks last year. -
USAFRet
So...absolutely unsure of your point with "USA manufacturing on the other hand..."Notton said:And then there is the parts supplier chain, which can be all over the world.
Kia and Hyundai had to recall more than 600,000 vehicles due to fire risks last year.
In any case, this is off topic for this site.