Wednesday, January 6th 2021
GPUs to See Price Increase Due to Import Tariffs, Other PC Components to Follow
Yesterday, we have reported that ASUS is officially increasing the prices of their graphics cards and motherboards, due to increased component and logistics costs. What the company meant by that was not exactly clear to everyone, as it looked like the company has adjusted to the current market prices exceeding the MSRP of components like graphics cards. The GPUs are today selling at much higher prices compared to the original MSRP and it is representing a real problem for consumers. Today, we get to see what is the underlying problem behind the announcement we saw yesterday and if we are going to see more of that in the close future.
According to the New York Times, the Chinese import tariff exemptions have expired with the arrival of a new year (2021) and we can expect the tariffs to start from 7.5%-25%, which will massively increase component costs. A Reddit user has noted that MSRP will increase about $80 for every major GPU manufacturer like ASUS, GIGABYTE, PNY, Zotac, etc. so we are expecting MSRP adjustment from other companies to follow just like ASUS did. The import tariff exemptions are also supposed to increase MSRPs of other PC components like motherboards, SSDs, PSUs, cases... everything without exemption. As a product of a trade war between China and the Trump administration, it remains a question will these tariffs get easier shortly, so consumers can afford their desired components.
Sources:
Tom's Hardware, Reddit
According to the New York Times, the Chinese import tariff exemptions have expired with the arrival of a new year (2021) and we can expect the tariffs to start from 7.5%-25%, which will massively increase component costs. A Reddit user has noted that MSRP will increase about $80 for every major GPU manufacturer like ASUS, GIGABYTE, PNY, Zotac, etc. so we are expecting MSRP adjustment from other companies to follow just like ASUS did. The import tariff exemptions are also supposed to increase MSRPs of other PC components like motherboards, SSDs, PSUs, cases... everything without exemption. As a product of a trade war between China and the Trump administration, it remains a question will these tariffs get easier shortly, so consumers can afford their desired components.
76 Comments on GPUs to See Price Increase Due to Import Tariffs, Other PC Components to Follow
The new prices and the continued rise in cost to the end user is now the new "norm"... prices only ever will go up and never will return to pre-2020 levels.
Acceptance - while hard to logically or financially justify - may be the only option. (as lets be fair, everyone on TPU likes hardware and wants upgrades)
I mean, it was foreseeable, but still, common! GPU's already cost too much...
Oh well. Not in the budget means no purchase. More money for me.
Scalpers got those too.
I wanted an upgrade but I'll skip this year.
I have had no issues finding consoles for family
I'm not buying anything anymore.
Either cut your f**** margin or keep your products !
Never forget that they need us, not the other way around !
Early release were soaked up pretty quickly guess they actually made ample amount and demand was lower no telling
I sure wasn't looking/ following at consoles very much beside reviews.. but no telling if I will later.
- Who is to say whether the tariffs become permanent or not. Trade deals are important but there are so many crisis at the moment that this could be on the back burner for years.
- Even if the tariffs get repealed, prices will probably just stay the same and keep rising anyway due to rising supply chain issues, inflation, and greed.
One thing that I doubt will ever happen is that the tariffs will work as intended and stimulate manufacturing in the U.S. as our nation has become a land of uneducated fatties too complacent to innovate.
While I wanted to build a new AMD system with a 5600X to go along with my new 3090 FE and new case (Formd T1), I'm just tired of putting so much effort into getting parts. Raising the prices is just another reason to stick with my 9700K system.
People blew it out of proportion
Tariffs won't last long
But as far as new USA manufacturing wrong side won for that to happen EPA will be out in full force once again.... just as it was under previously and we will shed what has been created fairly soon and they will leave and go back to where they were before China/.....
All I know is that my company wasn't handing out raises this year with the horrific downturn in production and sales due to the government ass-hats for shutting everything down. Now with gas already climbing back up (used to be $1.99 on average about 2 months ago, but once all voting was in and Biden was announced as new president gas went up about a quarter and it's up another dime as of this morning) plus health insurance increasing....I'm making less this year than I was last year at this rate...and the year just started.
I wonder if soon to be president Harris will back off the tariffs against China and unravel all that Trump did.
*disable sarcasm*
Plus what better way to compete by taking back leadership in new green technologies where China is #1 right now.