PC makers have been preparing to reduce reliance on hardware produced in China for years, and large computer suppliers like Dell and HP seem to have diversified their supply chains. For smaller system integrators, the situation is more complex.
Recent U.S. government-imposed taxes on Chinese imports are driving up the cost of computer parts and there's only so much they can do. Puget Systems published a blog post explaining that while it can absorb some of the price changes caused by tariffs, it will inevitably have to pass the higher costs on to its clients.
China produces a large portion of global electronics, so its impact on the computer market is hard to overestimate even though large companies like Apple, Dell, and HP are expanding production in other countries — including Vietnam, which isn't subject to U.S. tariffs. In early 2025, two separate 10% taxes were added on nearly all goods made in China — one on February 4, the other on March 4 — resulting in a combined 20% increase.
Additionally, goods that were temporarily exempt from a separate 25% charge set in 2018–2019 may lose that exemption on June 1, potentially bringing the total increase to 45% for some items, such as the best graphics cards.
"We absorb initial cost changes on many components," wrote Jon Bach, president of Puget Systems, in the blog post. "We adjust our pricing when ongoing long-term costs are clear, and absorb differences otherwise. This reduces noise and prevents us from making many nickel-and-dime changes."
Starting April 1, Puget Systems will adjust pricing based on updated component costs. Graphics cards and accelerators, due to their high cost, are being hit hardest — prices are going up by 10%, despite already being under a 20% tariff. That rate could jump to 45% on June 1, pending policy changes, Puget warns.
Puget also warns that parts like graphics cards can be expensive to buy at launch due to shortages. When combined with additional tariffs imposed by the U.S. government, graphics cards may get too expensive for many potential buyers.
Network and storage controllers are increasing by 20%, along with chassis and power supplies, as these are generally produced in China. CPU coolers and fans are also expected to rise around 20%, though their overall impact on system pricing is minimal.
For motherboards, initial changes will be held off, as parts come from various countries and it is still unclear how original design manufacturers will handle pricing under the new tariffs, so any adjustments will depend on how costs evolve. CPUs remain unaffected since most are not sourced from China.
SSDs and hard drives are seeing about a 10% price increase, mainly due to shifts in the broader supply network rather than tariffs on core components like NAND chips or media platters. Memory is also expected to rise around 10%, though recent spot market price drops may reduce the impact.
Costs for Puget's own services, such as warranties, will remain at the existing level as the company only changes in response to internal business expenses, typically tied to inflation and staffing.
In addition, some suppliers have raised prices more than necessary, using uncertainty as a reason to drive urgency and increase revenue. This kind of behavior is not limited to one industry and affects prices throughout the entire supply chain. Because the supply network is so layered, predicting costs can be difficult.
There's hope for some future relief if suppliers reduce prices, and those savings would be passed on. But that's something that would happen at a future date. In the meantime, Puget Systems stockpiles hardware, which helps to manage shortages and delay price hikes.
In addition, great relationship with suppliers and manufacturing partners also help: Puget can often get information about upcoming changes straight from the source and prepare.
But there's only so far such measures can reach, and with how quickly everything is changing, eventually Puget will be paying higher costs. At that point, it will need to pass those costs along to its customers. For now, Puget encourages customers to share their upcoming needs, make purchases early if possible, and factor possible price jumps into their budgets.
