The implementation of tariffs on consumer graphics cards by the US Government has been postponed, with plans to gather additional industry “feedback.” These tariffs, initially proposed during the Trump era to diminish the influence of Chinese-based hardware, were set at 25% for all directly imported hardware from China, covering graphics cards, motherboards, and various devices. The Biden administration intervened, temporarily lifting the tariffs, sparing consumers from an unforeseen increase in component pricing in the US.
Initially set for January 1, 2024, the imposition of tariffs has been postponed to May 31, 2024, citing a perceived lack of industry cooperation by the government. This delay is welcomed by consumers, as a 25% tariff would have led to significant price increases, potentially disrupting the markets. Despite this positive outcome for consumers, trade groups in the US express frustration, asserting that the decision has impacted their business planning.
The NVIDIA GeForce RTX 4090, priced at approximately $2000 US, could see a substantial increase to $2500 US with a 25% hike. Entry-level options like the $299 US RTX 4060 and the $269 US RX 7600 would also experience price jumps to $373 US and $336 US, respectively. Such cost escalations could impact the gaming market and the graphics industry, which has recently begun to recover from challenges.
The Biden administration is expediting US market growth by incentivizing domestic production through initiatives like the CHIPS Act. They’re also streamlining business processes, particularly for companies with established facilities in “hostile” nations. The five-month tariff delay further exemplifies these efforts, reflecting a consumer-friendly approach.
Via PCMag