Friday, September 28th 2018
Graphics Card Manufacturing Being Moved From China in Bid to Escape Import Tariffs - Price to Increase 5-10%
The trade war between the US and China has been raging for a while now, and graphics cards are a minimal part of the goods affected. However, these are some of the most sought-after products in the hardware community, and thus deserving of special attention. Added tariffs, however, will either a) be absorbed by companies, or b) be passed on to customers at increased retail pricing. Since companies don't want to reduce their profit margin, and know consumers will buy less product at higher prices, steps are being taken by AIB (Add In Board) partners from both AMD and NVIDIA in moving graphics card manufacturing out of China.
Options being most seriously considered and acted upon stand as Taiwan and Mexico, where the lack of any additional tariff, added to relatively cheap labor, would allow manufacturers to keep operating costs relatively stable - and thus end user pricing. However, while this search for alternate manufacturing locations continues, the tariffs are already being pressed upon graphics cards makers, and it's expected that pricing of graphics cards will be facing increases of 5-10% in the coming months. As if we needed additional price increases in some old (and especially new) product lines...
Source:
TechSpot
Options being most seriously considered and acted upon stand as Taiwan and Mexico, where the lack of any additional tariff, added to relatively cheap labor, would allow manufacturers to keep operating costs relatively stable - and thus end user pricing. However, while this search for alternate manufacturing locations continues, the tariffs are already being pressed upon graphics cards makers, and it's expected that pricing of graphics cards will be facing increases of 5-10% in the coming months. As if we needed additional price increases in some old (and especially new) product lines...
98 Comments on Graphics Card Manufacturing Being Moved From China in Bid to Escape Import Tariffs - Price to Increase 5-10%
... and by doing so sky rocket inflation, which would LOWER the standards of living for everyone.
Tariffs have historically been used when a government funnels in money to an industry to gain market share. The Japanese steel industry was, for a time heavily subsidized and the US responded with tariffs and Buy American legislation. It was effective because those products could be made here and unions took major salary scale hits to offset much of the difference also. The US does the same in the dairy industry; American farmers can not compete with Canadian farmers so the US government pays US farmers so that they sell milk to Canadian buyers for less than they sell to American buyers ... .which is necessary to match what Canadian farmers charge.
In this case it's all bluster however as US companies have their factories in mainland China on other low labor cost countries. You can't sell a smartphone or a video card at the same price here when you have to pay a living wage. So when Dell buys a laptop from an ODM in Taiwan who has it's production facilities in mainland china ..... it hits everybody in the chain. To remain competitive, it will be the American worker who loses their jobs and more and more operations will be moved overseas. So while the tariffs "plays on TV" for some ... the net impact for US employment is negative. American executives benefit greatly .... American worker does not as has already been seen as reports have already come in of rising unemployment in tech sector.
this is the reason why he did it>>>> In 2017, the United States had a trade deficit of 566.03 billion U.S. dollars.
these Tariffs will help counter deficit the USA faces, nothing will or can stop this deficit war that is going on except the removal of the deficit, it is understandable that in the process some things will be a bit harder or maybe even in some area's a bit more costly but the end result is going to be the removal of this deficit whether or not anyone likes it or is happy about it. So far it is working for the US and frankly it's about damn time!
I also want a cheaper 2080ti with freesync.
Just living in my own world over here...
I would rather subsidise high value workers than low value. They will already expect more and generate more local revenue and jobs. it comes down to if you live in the US and you paid $10 more for something so that US worker can make it as opposed to the dollars leaving for another country that does not help the us at all you're getting a net benefit that helps everyone in the neighborhood that they live in. Schools will end up getting more money because people can afford nicer houses and that raises tax income neighborhoods and businesses will grow and develop there because people will want more things meaning a general increase in the standard of living for all involved.
This is the same reason I don't like to shop at Walmart and instead choose Costco or other local Grocers to buy things at, they contribute to a higher standard of living for everyone in the community that I live in opposed to paying Walmart or another large corporation that then uses shell companies to wash out their dollars so they pay no tax and instead benefit from under paying their workers so that they have to survive off welfare that then gets paid back to Walmart when they buy their food and other items there.
How long until interest alone is unsustainable? @ the current rate, it won't be that long.
What you also don't wanna see is that the middle/lower income families become poorer & the greedy corporations continue with their merry way, with this move. If you really want more $ in the hands of the people then tax these megacorps more, not hand them one time tax breaks worth trillions of $ :shadedshu:
I'm all for putting an end to this Chinese experiment, they've gathered far too much power & money that frankly IMO they don't deserve, however the way you're going about it seems counterproductive atm. The people in the US won't get richer if the $ keeps getting accumulated at the top, there is no trickle down Reaganomics.
The rest I can agree with. ya and Fairness also depends who you trade with.
With the one time tax break, how much of it was reinvested back in the US vs the amount spent on share buyback or dividends?
US minimum wage has not been going up all that much *despite* economical growth, and there are barely any mechanisms in place to funnel the additional income to the working class (or low / mid income groups) anyway. All that profit goes right back into the pockets of the same establishment Trump states he is so much against... but is in fact a part of.
In the land of the blind... Trump voters seem to be oblivious to the fact that power corrupts and that the immense inequality in wealth and the complete lack of good social security will always preserve the status quo and are completely counterproductive to any kind of policy that brings more money to the country. Additional income only serves to preserve a failing economy and the US needs it because debt is soaring. There is simply no other place for all that cash to go other than into the pockets of the wealthy. The entire tax system is geared to it, and ironically, Trump is just another president that seeks to continue a long history of deregulation and tax cuts that benefit the top incomes. And when it comes to spending of the government itself, the US public seems content that a massive percentage goes straight into warfare and Defense budgets rather than domestic living standards. Gotta keep them guns blazin'
So much for not being a typical politician and being anti-establishment. Apparently a few silly Twitter messages don't really do the trick after all, but hey, they're nice soundbites and good TV. I remember the Roman Emperor's advisors line in the movie Gladiator: 'You will give them death, and they will love you for it'. 2000 years later and the masses still fall for it. Amazing.
Putting your head in the sand and ignoring your enemies is not a smart strategy. (The enemy being the Chinese dictatorship)