President Trump announced late Friday that a range of electronics imported from China will not be hit by his new reciprocal tariffs, according to a US Customs and Border Protection notice. The exemption, which applies to items arriving in the United States or leaving bonded warehouses on or after April 5, covers smartphones, computer monitors, semiconductors, various electronic parts, and, importantly, high-performance GPUs. Tech companies were bracing for big cost increases. Apple, for example, assembles about 90 percent of its iPhones in China and holds roughly six weeks of inventory in US warehouses. Without this exemption, consumers would likely have seen higher prices once that stock ran out. Framework, the modular laptop maker, has already paused US sales of some Laptop 13 models and discounted others by up to 12 percent after a new 10 percent tariff on Taiwanese parts squeezed their margins.

The GPU market got another break thanks to a clever workaround in the United States-Mexico-Canada Agreement. A research firm SemiAnalysis pointed out that graphics cards made in Taiwan can still enter the US tariff-free if they undergo final assembly in Mexico or Canada. That loophole applies to digital processing units and related circuit boards, which means companies relying on NVIDIA's top-tier accelerators for AI won't see an immediate price jump. White House Press Secretary Karoline Leavitt said these steps are part of a two-pronged plan: offering short-term relief to keep consumer prices down while at the same time pushing major tech firms like Apple, TSMC, and NVIDIA to invest billions in US manufacturing. However, many experts warn that high-precision components are still largely made in Asia, so building up domestic production capacity could take months or even years and may remain more expensive in the meantime.

Update: President Donald Trump posted on Truth Social the following: "There was no Tariff "exception" announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff "bucket."We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations."

As the US works to bring more semiconductor manufacturing back home, the machines needed to turn silicon into the world's most advanced processors are becoming pricier and harder to get, thanks to tariffs. Foundries building new fabs report that the specialized equipment they rely on, everything from extreme ultraviolet (EUV) lithography steppers to chemical vapor deposition chambers, carries a roughly 15% premium compared with similar gear sold overseas. Several forces are at play. The raw materials, high‑grade quartz for vacuum enclosures, and exotic metal alloys for precision optics have climbed in price. At the same time, key components like ultra‑accurate motion stages and alignment sensors are in short supply, sometimes stretching lead times for critical subsystems well beyond 18 months. For a fab racing to move from a 7 nm to a 5 nm process, those delays can mean missing tight ramp‑up targets and pushing out product launches.

Smaller chipmakers feel the squeeze the hardest. With fewer orders to negotiate volume discounts, second‑tier foundries may see their capital budgets balloon by 20 percent or more. In response, some are taking a mixed approach, sourcing commoditized tools such as oxidation furnaces and rapid thermal processors from multiple suppliers while reserving single‑vendor deals for high‑stakes systems like EUV scanners. Government support through the CHIPS Act offers a partial safety net, helping to subsidize capital expenditures. Yet even with grants and tax credits, the challenges will remain. Success will hinge on tight coordination between fabs, equipment makers, and policymakers to tame rising costs, shorten delivery schedules, and keep America's chip renaissance on track.

Framework, the maker of modular laptops, has temporarily halted sales of specific models in the US due to newly imposed tariffs. The move affects the Laptop 13 configurations. The company shared its decision through the official X account: "Due to the new tariffs that came into effect on April 5th, we're temporarily pausing US sales on a few base Framework Laptop 13 systems (Ultra 5 125H and Ryzen 5 7640U). For now, these models will be removed from our US site. We will continue to provide updates as we have them." The tariff adjustment, which raises import duties on goods from Taiwan to 10 percent, directly impacts Framework's cost structure. Originally priced assuming a zero percent tariff rate, the affected devices would now incur losses if sold at current pricing due to the zero-tariff situation in the past. In a detailed follow-up, Framework noted that other consumer electronics firms have undertaken similar recalculations, though few have publicly acknowledged their course of action.

Currently, the Ultra 5 125H model has already been removed from Framework's online store. Other models, such as the Ultra 7 155H and Ultra 7 165H, are for now discounted by up to eight percent, suggesting a temporary price adjustment strategy rather than a complete market withdrawal. Higher end AMD Ryzen 7 7840U SKUs are discounted by 10% and 12%, which is interesting. Framework's situation is just a part of the shift happening across industries triggered by the US administration's recent tariff changes. While Framework's statement leaves the possibility of resumed US sales open, no timeline has been provided. The consequences of the tariff shift are still unfolding across global supply chains.

While semiconductors are exempt (for now at least) from Trump's tariffs, other components going into our PCs are not. According to Tom's Hardware, which spoke to multiple system integrators, tariffs are about to hike PC costs by at least 20%, with system integrators hurt the most. The tariff package imposes a 54% rate on Chinese goods, 34% on top of earlier tariffs, and significant duties on Taiwan, South Korea, and Vietnam products. These countries supply essential PC components such as SSDs, RAM, cases, and graphics cards. Wallace Santos, CEO of Maingear, highlighted the immediate effects on production: "Tariffs have a direct impact on our cost structure… which we have to pass down to our customers." He further explained that some suppliers have halted production in China, leading to scarcity and escalating costs. Santos estimates that prices for his PCs will rise "20 to 25% as a result of the tariffs."

Other company leaders express concern over the limited alternatives available. Kelt Reeves, CEO of Falcon Northwest, stated, "Sadly the overwhelming majority of PC component manufacturing is not done in the US and never has been. There's no US alternative supplier for most PC parts." Reeves added that even US-based system integrators are "facing skyrocketing costs" due to the tariffs, which are set to worsen an already challenging market situation caused by ongoing GPU shortages. Jon Bach, CEO of Puget Systems, shared his perspective in a recent blog post, noting that his company might absorb some costs to minimize consumer price increases. However, even before the latest tariff updates, Bach predicted a price rise of "20 to 45 percent by June." Critics of the tariffs warn of broader economic issues. Gary Shapiro, CEO of the Consumer Technology Association, condemned the policy as "massive tax hikes on Americans that will drive inflation, kill jobs on Main Street, and may cause a recession for the US economy." With these tariffs taking effect, the PC industry faces a period of adjustment marked by increased costs and significant supply chain challenges.

ASUS executives have warned investors that consumers may face higher prices later this year as the company accelerates its manufacturing exodus from China in response to anticipated US tariff policies. Despite efforts to absorb costs internally, ASUS acknowledged during its recent earnings call that production relocation expenses could eventually impact retail pricing. This comes as the PC industry braces for trade policy changes under the new US administration. While competitors like Dell and HP have already established diversified supply chains outside China over several years, ASUS faces the financial pressures of rapidly developing alternative production capacity. Such transitions induce significant costs beyond facility construction, including workforce training, supply chain reconfiguration, and temporary production inefficiencies.

"We will try to limit these costs to within a reasonable level. However, as we make further adjustments to production lines, it may become possible that we need to offset some of these costs to our clients," stated an ASUS co-CEO during the call. The executive noted that several competing manufacturers have already implemented price adjustments to compensate for similar expenses. ASUS wants to maintain competitive pricing despite these pressures, indicating a willingness to accept margin compression in the short term. Component-level products may experience more immediate pricing pressure than fully assembled systems, where manufacturers can partially offset tariff impacts through internal efficiencies. ASUS's cautious messaging suggests the company is attempting to balance shareholder concerns about profitability with consumer sensitivity to price increases in the competitive PC market.

In an interview with The Telegraph, Acer CEO and chairman Jason Chen said that its products made in the PRC will see a price increase of 10 percent as direct results of the new tariffs that the US will levy on electronics. However, Mr Chen is quoted as saying "We think 10 percent probably will be the default price increase because of the import tax." which doesn't mean it will be exactly 10 percent, as it might vary a bit between product segments. That said, what's clear is that Acer and most likely every other company that manufactures hardware in the PRC aren't going to eat any of the tariffs, as the companies appear to be shifting the burden of the new tariffs straight over to the end consumers. Mr Chen also suggested that some companies might be increasing their pricing by more than 10 percent.

The price increase will happen over time, as the new tariffs won't affect products that have left the PRC before the end of February. Alongside Acer, which is the fifth-biggest computer brand in the US market, it's likely that Dell, HP and Lenovo, as well as Apple, are going to hike their prices by the same 10 percent or more. Acer moved the assembly of its desktop computers out of the PRC during Trump's previous term, when a 25 percent tariff was imposed. Now Acer is looking at moving at least some additional parts of its productions out of the PRC and the US is on the table for some of its products. Considering that some 80 percent of all laptops imported to the US are made in the PRC, the Consumer Trade Association is expecting the new tariffs to cost US consumers some US$143 billion, which it assumes will lead to a slump in sales of consumer electronics.

TSMC is set to hold its inaugural board meeting on US soil on February 12—a strategic decision influenced by potential reciprocal tariffs outlined by the US President Donald Trump. As the company's first wafer fabrication facility in Arizona is in mass production using its 4 nm process, the US board meeting marks a first in TSMC's global expansion, where the company is holding a board meeting outside of Taiwan for the first time in its four-decade history. The board gathering, which will bring together directors from its Taiwan headquarters and overseas operational sites, comes amid concerns over possible US tariff measures targeting key trade partners, including Taiwan. Trump recently hinted at imposing tariffs on semiconductor products, which could directly affects TSMC's business operations.

Among the attendees will be Liu Jingqing, a director representing Taiwan's National Development Fund Management Committee, the company's largest shareholder holding 1.65 billion shares. Liu, who left for the United States on February 8, is expected to return to Taiwan immediately after the meeting, ensuring the board remains aligned with upcoming legislative sessions. During the meeting, the board will review the financial results for the fourth quarter and decide on cash dividends for 2024. Despite uncertainties over US tariffs, TSMC continues to expand its US investments. Its second and third fabs in Arizona, expected to employ more advanced processes such as 3 nm and 2 nm, show the company's long-term commitment to the American market while it continues advancing process and packaging capacity in Taiwan. TSMC Chairman C.C. Wei stressed that advancing mass production in Taiwan remains critical even while expanding US operations.

ASRock told PCMag it plans to move some of its production out of China. "We need time to shift the manufacturing of GPU cards and other products hit by the 10% tariff to different countries," they said. This week, the White House put a 10% tax on all Chinese imports to the US, this tax applies on top of any other taxes the US already had on certain Chinese goods. ASRock also said, "While we move from making things in China to making them elsewhere, we might take on some of the cost and raise prices a bit to show the higher costs." But they added, "It's not easy to raise prices because the market is still very competitive." ASRock also told PCMag that it already pays a 25% tax on its power supplies made in China. "For items like PSUs that already have an extra 25% tax, makers will keep doing what they've been doing," the company said.

If Trump administration doesn't follow through with his threats of huge tariffs against Taiwan, the PC gaming industry will primarily feel the effects on companies like ASRock and MSI (which makes its motherboards in Shenzhen, China). These are the component and peripheral makers that have part or all of their manufacturing processes in China. ASRock's announcement isn't a huge surprise, as we saw hints of this trend in late 2024 when PC Partner (second-biggest graphics card maker, producing PCBs for brands such as Inno3D and Zotac) moved its headquarters from China to Singapore. It will be no surprise if other top-tier brands such as GIGABYTE, MSI, and ASUS take similar actions sooner or later.

The United States, currently led by the Trump administration, could be preparing a surprise package to its close silicon ally—Taiwan. During a House GOP issues conference in Florida, US President Donald Trump announced that he would impose 25% to 100% tariffs on Taiwan-made chips, including the world's leading silicon manufacturer, TSMC. Trump addressed the conference, saying, "In the very near future, we are going to be placing tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to return production of these essential goods to the United States. They left us and went to Taiwan; we want them to come back. We do not want to give them billions of dollars like this ridiculous program that Biden has given everybody billions of dollars. They already have billions of dollars. […] They did not need money. They needed an incentive. And the incentive is going to be they [do not want to] pay a 25%, 50% or even a 100% tax."

The issue for TSMC is its massive reliance on US companies to drive revenue. The majority of its cutting-edge silicon is going to only a handful of companies, including Apple, NVIDIA, Qualcomm, and Broadcom. With tariffs, the supply chain economics, especially in the world of semiconductors, will break. TSMC's most significant export country is the US, and US companies with trillions of US Dollars of market capitalization rely on Taiwanese silicon. As a result, TSMC will most likely raise its wafer prices, with results trickling down to US companies raising their product prices with additional price hikes. TSMC plans to bring its advanced manufacturing on American soil, but given that these tariffs might break the economic model it currently operates under, it may need to happen sooner. Taiwan-based silicon giant has planned to leave US facilities trailing behind by a generation or two of advanced manufacturing, while domestic facilities produce the newest nodes. If Trump decides to go through tariffs, TSMC could make additional changes to its US-based manufacturing plans.