A Trump tax means you’ll pay even more for new graphics cards from Nvidia and AMD

“Don’t build a high-end gaming PC right now,” Tom’s Hardware declared in November. “This is a bad time to build a high-end gaming PC,” ExtremeTech echoed last month. But it looks like the worse time to build new gaming equipment is yet to come. That’s because a perfect storm is pushing the price of components like mandatory Nvidia or AMD video cards even higher – and because Donald Trump is now part of that storm.

The Trump administration is now imposing a 25% tax on graphics cards imported from China, and at least one PC component manufacturer has announced that it will pass on part of that cost to consumers.

We have known for two years that PC components were being wiped out in Trump’s trade war in China. In 2018, GamersNexus, in particular, he explained in detail how PC parts can suffer a price increase of between 10 and 25% due to the categories that the Trump administration tried to tax. Apple became famous by approaching Trump to avoid some (but not all) import taxes on PC parts, allowing him to build his Mac Pro in the United States using parts imported from China. (Apple did not respond to a request for comment on tariffs.)

But PC gamers and other graphics card buyers Besides that managed to dodge the higher price bullet in September 2019, when the Trump administration granted specific exemptions for “graphics processing modules” and “accelerator modules”. It is like The New York Times reported last week, the government extended many of its tariff exemptions until the end of the year.

But December 31, 2020 came and went with any additional extensions – and The Verge can confirm that the exemptions for graphics cards and motherboards (classified under report number 8473.30.1180) were among those that expired at the end of the year.

According to the United States government’s Harmonized Tariff Schedule, these PC components would normally be free of import taxes. Now, according to “list 3” tariffs, which were designed to tax $ 200 billion in Chinese products, suppliers of graphics cards and motherboards need to find out where to find the additional 25% to pay the tariffs.

I contacted the main GPU and motherboard manufacturers, and they all declined to comment (Nvidia, Asus, MSI) or did not respond to my emails (Gigabyte, EVGA, Zotac, XFX, PNY). It is a little strange.

“MSI cannot answer your questions at this time. Thank you for your interest and understanding, ”an MSI representative told me.

I’m still waiting for an answer from AMD.

Intel says the tariffs have not had an impact – yet. “Regarding tariffs, so far, it is not significant and it has not impacted our prices,” a spokesman told me. But Intel still doesn’t make many motherboards or GPUs, and is not speaking for partners there.

But we really don’t need to speculate whether it could affect the price you pay because Asus, the largest motherboard maker and a well-known GPU supplier, said it will and already increased some of its prices, as reported by Videocardz. Here is the statement the publication received:

Update on MSRP pricing for ASUS components in 2021.

This update applies to graphics cards and motherboards *

We have an announcement regarding the MSRP price changes that will take effect in early 2021 for our award-winning series of graphics cards and motherboards. Our new MSRP reflects increases in component costs. operational costs and logistical activities plus the continuation of import tariffs. We work closely with our supply and logistics partners to minimize price increases. ASUS greatly appreciates your continued business and support as we navigate this time of unprecedented market changes.

* additional models may increase as we move into the first quarter.

– Juan Jose Guerrero III, Technical Product Marketing Manager at ASUS

The big question now is whether price increases can become permanent.

When we looked at this year’s batch of next-generation PC graphics cards, we needed to give Nvidia and AMD the benefit of the doubt that you would actually be able to buy them at the tag price.

This turned out to be an insecure bet. Although it is clear on social media that some people managed to buy them at retail, it was also clear on eBay that the real price of an RTX 3090, 3080, 3070, 3060 Ti, RX 6800 XT or RX 6800 is way above the MSRP.

AMD’s RX 6800 series cards, in particular, never reappeared at retail long enough to make an impact. I personally have been waiting and watching to attack one since my analysis, and I never saw an opportunity – unlike Nvidia cards, where I just couldn’t beat the swarm of buyers to the digital box almost every time I tried.

Trump’s tariffs aren’t the only thing that could make buying a GPU worse. Bitcoin prices are now on the rise, briefly crossing $ 40,000 for the first time today. Ethereum’s price doubled last month and is also approaching the previous record.

Tom’s Hardware is pointing out that, on any graphics card MSRP, it can take much less than a year for your GPU money to be returned with mining. The last time bitcoin prices skyrocketed, it caused a huge GPU shortage that lasted for many months. It was news in May 2018 when Nvidia tweeted that you could finally find a graphics card again in MSRP.

But this time, we are already running out of GPU due to a manufacturing shortage pandemic and the pent-up demand for performance that the new wave of next-generation graphics cards and consoles offer. More than half of Americans turned to video games during the pandemic, and graphically intense games like Cyberpunk 2077 and Flight simulator inspired people to build new PCs that only the latest GPUs could run well.

Even if GPU makers didn’t have a 25% tariff to deal with, eBay’s prices make it clear that they were already leaving money on the table. One way that manufacturers can take advantage is to create more expensive versions of the same graphics cards with more sophisticated cooling systems and higher clocks, and many of the cards that players have actually managed to buy are like that. You can certainly pay $ 600 for a $ 400 RTX 3060 Ti if you can find it at retail or $ 780 for a $ 500 RTX 3070.

Now, however, I wonder if the base price of these cards is also at risk. In late November, AMD said Hardware out of the box that the AMD RX 6800 XT should be available from its partners for the starting price of $ 649 MSRP within eight weeks. Almost six weeks later, it doesn’t seem very likely.