Government tariffs are going to make graphics cards more expensive

Government tariffs are going to make graphics cards more expensive

Following the implementation of some $200 billion worth of trade tariffs from the U.S. government aimed at Chinese imports, the PC hardware market is going to suffer for it and those costs are going to be passed on to consumers, as margins were already razer thin. At the launch of the new tarrifs, a number of different imports coming from China will be subject to a 10 percent tariff, with that increasing to 25 percent in the New Year.

Confirmed by a Gigabyte employee on the LinusTechTips forums, here's the list of affected products:

  • Motherboards
  • Graphics cards
  • BRIX PC kits
  • SSD
  • Bridge
  • Mice
  • Mouse pads
  • Keyboards (if bundled with a mouse)
  • CPU coolers
  • Power supplies
  • PC Cases
  • Gaming chairs

Although this will mean that all of the above products are noticeably more expensive in the months to come, there is a sliver of light in the distance that gives us hope. Since most of the affected companies are not interested in taking a financial hit from this, many are planning to move manufacturing and production out of China and to nearby Taiwan. Already a hotbed of electronic production, Taiwan has no such tarriffs enacted against it and that means prices can come back down.

It may take a while for such a move to take effect though and prices to trickle down. Expect big hikes in the near to medium term before correcting down again.

Image source: Torange