Thursday, December 1st 2022

US Might Reimpose GPU Import Tariffs in the New Year

Currently, the US has an exclusion in place when it comes to import tariffs relating to graphics cards and GPUs imported from China, but the exclusion is set to expire on the 31st of December this year. So far, the US government has been quiet on whether or not the import tariff will be reinstated or not. If the tariff was to be reinstated, US consumers are looking at a 25 percent import duty on graphics cards, starting on the 1st of January, 2023.

There's no easy way to circumvent the tariff either, as it includes items like "printed circuit assemblies, constituting unfinished logic boards," according to Tom's Hardware. Not all graphics cards are made in China though, but the majority of graphics cards are today. It's possible that NVIDIA's move of its logistics center from Hong Kong to Taiwan could have some relation to this as well, as NVIDIA would then be shipping products out of Taiwan, rather than China, depending on how the US Customs classifies Hong Kong these days. We should know what happens in a month's time, but a 25 percent import duty on graphics cards will likely kill most sales, as most people already find them overpriced. This would of course affect AMD and NVIDIA, as well as their partners in the same way, unless they make their graphics cards outside of China.
Source: Tom's Hardware
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108 Comments on US Might Reimpose GPU Import Tariffs in the New Year

#26
Sithaer
ZareekYeah, it goes way beyond sales tax. There are also many states without sales tax, but they pay in other ways. Alaska doesn't have taxes because the state gets oil money.

Yes, but what do you get for all those taxes? Free healthcare, free childcare, free college, a reliable retirement pension system, infrastructure that is not crumbling, how many homeless people does your country have? I know it varies from country to country in the EU, those are just some examples of things that we lack in the US or are massive issues here. People here are so interested in their personal freedoms, they ignore all the issues that surround them that are contributing to the downfall of our society.
Try all that with our average of 500 $/month wage from most full time jobs.
Maybe all that sounds good on paper to you but I can guarantee to you that the reality is all different here.
Truth to be told the kind of hardware I have atm is luxury around here and I'm lucky to have it..

Homeless and Infrastructure lol do a google or whatever search about Hungary then come back to me.:rolleyes: 'sry for that outburst but I can't stand it when ppl from good ol Murica comes at me saying how its not so bad here when I'm the one living in this shit ass of a country, give me a break..'
Posted on Reply
#27
claes
Divide OverflowGPUs were exempted in the Trump era policy. Will Joe Biden exempt them?
No, they weren’t initially. First 10% under Trump, then 25%, then they were suspended, then the Biden administration exempted them. The exemptions expire at the end of the year unless the USTR extends them, which is likely.

www.pcmag.com/news/how-trumps-tariff-hike-may-affect-prices-for-pc-parts
www.pcmag.com/news/trump-lifts-tariffs-on-certain-pc-computer-parts
www.pcmag.com/news/gpu-pricing-relief-us-temporarily-lifts-trump-era-tariffs-on-graphics-cards
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#28
R-T-B
Divide OverflowGPUs were exempted in the Trump era policy. Will Joe Biden exempt them?
No? You are remembering the early first trump limits on the tax that rapidly expired. These are now the second, post Trump expiration Biden era exemptions that are expiring.

From your own articles:
The Biden administration is temporarily lifting the Trump-era tariffs on PC graphics cards imported from China, which might provide some pricing relief for GPU buyers.
None of that matters to my point though, which you are sort of proving.
Posted on Reply
#30
Zareek
SithaerTry all that with our average of 500 $/month wage from most full time jobs.
Maybe all that sounds good on paper to you but I can guarantee to you that the reality is all different here.
Truth to be told the kind of hardware I have atm is luxury around here and I'm lucky to have it..
I am very fortunate. I have much more than I need and basically no debt, but I have friends and relatives that have almost nothing. The top 20% of our population accounts for 86% of the wealth. The vast majority of us have accrued more debt than they can possibly repay in their lifetimes. Most Americans are one medical emergency away from bankruptcy or worse. I can go on and on. The grass is always greener on the other side of the fence.
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#31
Garrus
ZareekYeah, it goes way beyond sales tax. There are also many states without sales tax, but they pay in other ways. Alaska doesn't have taxes because the state gets oil money.

Yes, but what do you get for all those taxes? Free healthcare, free childcare, free college, a reliable retirement pension system, infrastructure that is not crumbling, how many homeless people does your country have? I know it varies from country to country in the EU, those are just some examples of things that we lack in the US or are massive issues here. People here are so interested in their personal freedoms, they ignore all the issues that surround them that are contributing to the downfall of our society.
Everyone is trying to move to the US where government services are well funded, incomes are high, and costs are lower. When I moved to the US I saved much money on housing, on buying regular goods, and I had such higher income, I had more than enough money for all those things and more. I come from a large family of immigrants that all left failed locations in the UK and Canada, and most of Europe is worse than those two countries. (I did really like New Zealand and Australia though, some of my family moved there and are happier. Canada I don't like much). I personally tried to settle down in Taiwan originally. Love Taiwan.

The first thing my best friend did when he graduated was move to Texas to work as a latin dance instructor, and he desperately tried to stay there. When I lived in Vancouver you meet massive numbers of immigrants. They all say "I tried to move to the US but couldn't get a VISA, so since Canada is easy, I moved here, and I plan to move to the US later when I can". The number of times I've made friends with Koreans that just stay in Canada until they can move to the US is hilarious. 100 thousand of them in Canada all trying to leave Canada after arriving there.

ETC. Don't spread that nonsense about social services and taxes. It isn't true. If you want a lot of social services, move to a state that provides a lot of them.

I think the tariffs are a great idea. There should be a general 30 percent tariff on every good coming from China. There is a large world out there. The US can buy from any of the other 200 countries. Japan, Korea, Taiwan, and Indonesia for example. Vietnam and The Philippines also. India. The list goes on.

There is a good reason for the tariffs. The US should not be transferring all the money and technology, particularly for advanced chip making, to China. The US is already overly dependent there on Taiwan, at least Taiwan is an ally.
Posted on Reply
#32
R-T-B
GarrusEveryone is trying to move to the US
Big big big [Citation Needed] here.
Posted on Reply
#33
claes
lots of citations needed lol
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#34
Zareek
GarrusEveryone is trying to move to the US where government services are well funded, incomes are high, and costs are lower. When I moved to the US I saved much money on housing, on buying regular goods, and I had such higher income, I had more than enough money for all those things and more. I come from a large family of immigrants that all left failed locations in the UK and Canada, and most of Europe is worse than those two countries. (I did really like New Zealand and Australia though, some of my family moved there and are happier. Canada I don't like much). I personally tried to settle down in Taiwan originally. Love Taiwan.

The first thing my best friend did when he graduated was move to Texas to work as a latin dance instructor, and he desperately tried to stay there. When I lived in Vancouver you meet massive numbers of immigrants. They all say "I tried to move to the US but couldn't get a VISA, so since Canada is easy, I moved here, and I plan to move to the US later when I can". The number of times I've made friends with Koreans that just stay in Canada until they can move to the US is hilarious. 100 thousand of them in Canada all trying to leave Canada after arriving there.

ETC. Don't spread that nonsense about social services and taxes. It isn't true. If you want a lot of social services, move to a state that provides a lot of them.
What year was that? I have relatives in Australia and in New Zealand, and they love it! They were born here and most of their family is here, but they will never come back to live in the US. I fortunately don't need the social programs, but a lot of people do. Just look at the statistics. Again, the grass is always greener on the other side of the fence.
Posted on Reply
#35
TheinsanegamerN
ZareekArgh, why haven't they learned from the mistakes of the past? The consumer pays the tariffs in higher prices. It has no effect on the businesses selling into the US. The steel tariffs literally bankrupted U.S. businesses that needed cheap raw materials to compete with foreign made products.
Because not setting the tariff results in the lowest common denominator being able to rob your industry blind (see also the US auto industry from the 90s to today). Something has to be done to protect domestic manufacturing, especially when other countries have tariffs on YOUR goods.

Half the reason nobody tariffed the US is because the US navy served as piracy protection for the world's oceanic shipping since the end of WWII. Many have forgotten that promise. Since Ol' Orange pushed the chinese tariffs, notice how companies like TSMC have been looking into setting up fabs in other countries, and manufacturing is slowly moving to vietnam and other parts of asia? It's not the only reason, but it did play a part on fabs leading the way.

I see your point on steel and raise the opposing point: that if the US hadnt waited until their domestic steel industry rusted away, the tariffs would not have caused such harm.
Posted on Reply
#36
Garrus
R-T-BBig big big [Citation Needed] here.
Elon Musk wasn't the first and won't be the last trans Canadian American immigrant. I've filled out immigration forms many times, for myself and others.

Come on, everyone knows the US is where most migrants want to go. The US system has the longest wait times. The US has the most immigrants of any country. 20 percent+ of all immigrants end up in the US (and many wanted to go to the US but couldn't, many Canadian and Australian migrants for example choose those countries as their second choice. Syrian migrants were accepted in Germany so went there, they couldn't get to the US).

I believe the US has 4 times has many migrants as the second place country, Germany. Also people after arriving in the US don't want to leave. They have the lowest number of EMMIGRANTS. 1 percent. A Polish person is 4 times more likely to emigrate as an American. So do obvious countries, like China or Syria etc. Facts are pretty straight forward here.

The US has less diversity for their immigrants, obviously having a lot of Mexican and south American immigrants (millions every year walking across the border right now if you include the illegals).Those immigrants are not as noticeable as the ones in Canada. But a large part of that reason is the US has a broken system that relies on family reunification as well as a broken border. Canada and other countries prefer "qualified" applicants in comparison, and have strict borders. Just try and cross the Taiwanese border illegally.
Posted on Reply
#37
R-T-B
GarrusElon Musk
Worst example you could've chosen for an "average individual."

Plus pretty sure he's a native citizen of South Africa.

The large wait times are due to the USA being very slow to admit and being generally better than anything south of it, not east/west/north. Good for us being better than South America I guess.
Posted on Reply
#38
MarsM4N
ixiOhhh snaaap. Prepare your wallets...

Gaming industry in nutshell. Boycot USA! Good that I'm living in EU :D.
Taxing of GPU's is just the tip of the ice berg. ;) Pretty ignorant if you think the comming restructuring of the global manufacturing & trading won't affect you. Outsourcing production overseas (esp. to unfriendly countries) was just idiotic & it's long overdue to bring them back, esp. for critical products. This will come at a cost, but far better than sitting there empty handed one day, with our hands tied behind our backs. The current Vlad Putler energy crisis is a sunday stroll compared to what's comming when Winnie the Pooh starts his trade war.


The US won't make a lot of friends with their "America First" policies. If democratic countries do not stick together now Winnie Pooh will eat us for lunch.
Posted on Reply
#39
lexluthermiester
TheLostSwedeUS Might Reimpose GPU Import Tariffs in the New Year
Good grief I hope not. Why punish the general consumer for the misdeeds of a foreign nation? That is political stupidity on a high level.
Bomby569Makes sense to me, China's government is bad, don't buy stuff from them.
While I will not disagree with you(fixed), what choice do we have? Half of the tech stuff made in the world comes from China, with few other options.
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#40
Dakkoch
Aren't all the gpu made in Taiwan? My 6600xt at least said that. So isn't this tariff pointless since it only applies to china?
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#41
R-T-B
DakkochAren't all the gpu made in Taiwan? My 6600xt at least said that. So isn't this tariff pointless since it only applies to china?
Hardly. It's quite the split right now.
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#42
Dakkoch
R-T-BHardly. It's quite the split right now.
Well, if Nvidia is smart then they would ship all the taiwan made gpu to the US and the china made to the rest of the world. Still kind of doesn't make since since the only TSMC N4 plant are in taiwan why not just make the rest of the gpu in Taiwan. I know there is a TSMC Fab in china but that's their 16nm. What about you? What gpu do you have and where is it made?
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#43
Why_Me
It would be nice to see Nvidia start up gpu production to the US.
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#44
R-T-B
DakkochWhat about you? What gpu do you have and where is it made?
Mine? EVGA 3090 ti and Taiwan. But nearly all USA EVGAs are Taiwan at this point. Not all companies are in that boat. I know for a fact several companies are still trying to move and it's honestly debatable if Taiwan could even feed the entirety of the USA market.
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#45
sepheronx
So all those used RTX gpus I got are all gonna be able to sell faster then I guess?
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#46
R-T-B
Why_MeIt would be nice to see Nvidia start up gpu production to the US.
You'd see Singapore, Mexico or even somewhere in South America well before that. Reality of the world. America is too expensive for manufacturing to ever return unless you want to work for similar wages to the far east or south of the border.
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#47
Fierce Guppy
I don't expect the tariff will be reinstated unless the intention is to punish both Taiwan and U.S. consumers.
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#49
Bwaze
Prople that are suggesting this will only impact US prices - it never does. US is the main computer market, whatever impacts it, impacts the world. Sometimes even more - companies can decide to raise prices elsewhere even more to subsidize their main, US market.

This was clearly seen with first China tariffs, when even companies with headquarters in EU or Asia, and even ones not present in US market followed suit - because they could. If all your competition raises prices, and you don't have the ability to flood the market with your cheaper product, you raise the price and raise your profit. Basic economics.

But of course there are no graphics cards developed outside US. Nvidia, AMD, Intel are all US companies, and that matters more than where the AIB makers are.
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#50
Frick
Fishfaced Nincompoop
Generally I'm in favour of anything that annoys gamers. What I really want is specific tariffs and specific sales taxes that only targets high end cards.
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