GPU Prices Expected to Go up 25% Due to Trump Tariffs
As if the shortage of graphics cards from AMD and Nvidia in 2020 wasn’t bad enough, gamers who couldn’t buy a GPU last year might find that their coveted PC component will cost more in 2021. No price hike is expected to blame for the increased costs this year, however, is the good news. The bad news is that these cards are made in China and the Trump administration’s 25% tariff on China imports is likely to drive prices up on GPUs, motherboards and processors.
The tax was due to go into effect in September 2019, but temporary exemptions for GPUs and accelerator modules were granted at that time, according to a report in the New York Times. However, these exemptions expired in late 2020 and the administration did not provide any further extensions. This means that graphics cards bought in 2021 could have a 25% tariff, which makes them even more expensive for gamers.
The cost of Nvidia’s flagship GeForce RTX 3080, valued at $ 699 with the tariff, will be up to $ 874 before sales tax is charged. With a 10% sales tax on the high end in certain states, it could add an additional $ 70 based on GPU price for a grand total of $ 944.
With Nvidia slated to introduce mobile RTX cards expected to be in 2021, it also means laptop games could get even more expensive if manufacturers like Dell, HP, and Lenovo pass the cost on to consumers as gamers don’t buy the GPU as the standard. sole component on notebooks.
GPUs aren’t the only tariffed PC components, however, and PC gamers caught in the middle of the US trade war with China can also expect to pay more for motherboards and processors. This means you’ll also need more budget if you want to equip your rig with the latest AMD Ryzen 5000 desktop processor or the highly anticipated 11th generation Intel desktop silicon this year.
So far, Intel claims that the tariffs have no bearing on the company’s pricing. In addition to processors, Intel also produces its own discrete Xe graphics. However, if you buy a motherboard from another vendor or manufacturer, you may be subject to tariffs.
Asus, which makes both motherboards and graphics cards, confirmed that component prices will rise. Other manufacturers have so far either refused to comment or have not responded to inquiries about their pricing plans with tariffs.
2020 was already a tough year for gamers as many found they had to pay well above MSRP to be one of the first on the block to secure a new GPU. Now, with tariffs, expect those costs to skyrocket even further.
The incoming Biden administration has not indicated whether it will reverse these tariffs. In previous interviews, President-elect Joe Biden has only signaled that he will review United States relations with China to see if changes are needed.