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

“Do not build a high-gaming computer now,” Tom’s hardware declared in November. “This is a bad time to build a high-gaming computer,” ExtremeTech echoed last month. But it looks like the worst time for building a new game rig is still coming. This is because a perfect storm must push the price of components like the Nvidia or AMD graphics cards that are still needed up even further – and because Donald Trump is now part of the storm.

The Trump administration is now charging 25 percent tax on graphics cards imported from China, and at least one computer component maker has announced that it will pass on part of the cost to consumers.

We have known for two years that computer components are being whipped up in Trump’s trade war against China. In 2018, GamersNexus, explained in-depth how computer parts can see a price increase between 10 and 25 percent due to the categories the Trump administration tried to tax. Apple famously teamed up with Trump to avoid some (but not all) import duties on computer parts so that it could build its Mac Pro in the United States with parts imported from China. (Apple did not respond to a request for comment on the rates.)

But PC gamers and other graphics card buyers also managed to evade the bullet of higher prices in September 2019, when the Trump administration granted specific exemptions for ‘graphics processing modules’ and ‘acceleration modules’. And like The New York Times reported last week, the government has extended many of its tariff exemptions until the end of the year.

But December 31, 2020 has come and gone with any additional expansions – and The edge can confirm that the releases for graphics cards and motherboards (classified under reporting number 8473.30.1180) were among those that expired at the end of the year.

According to the US government’s harmonized tariff schedule, the computer components are not normally import taxes. Now, among the ‘list 3’ tariffs designed to tax $ 200 billion in Chinese products, graphics card and motherboard sellers need to find out where they can get the extra 25 percent to pay tariffs.

I reached out to the major GPU and motherboard manufacturers, and they all did not want to comment (Nvidia, Asus, MSI) or respond to my email (Gigabyte, EVGA, Zotac, XFX, PNY). It’s a little weird.

‘MSI is currently unable to respond to your questions. Thank you for your interest and understanding, ‘an MSI representative told me.

I’m still waiting for an answer from AMD.

Intel says the rates have not yet had an impact. “As for the rates, so far it has not been significant and has not affected our prices,” a spokesman said. But Intel does not yet make many motherboards or GPUs and does not speak partners there.

But we do not really have to wonder if this could affect the price you pay, because Asus, the largest motherboard manufacturer and a well-known GPU provider, said and has increased all of its prices, as reported by Videocardz. Here is the statement that the publication received:

Update regarding MSRP pricing for ASUS components in 2021.

This update applies to graphics cards and motherboards *

We have an announcement about the price changes of MSRP that will take effect in early 2021 for our award-winning range of graphics cards and motherboards. Our new MSRP reflects the increase in component costs. operating costs and logistics activities plus a continuation of import tariffs. We have worked closely with our supply and logistics partners to keep price increases to a minimum. ASUS appreciates your continued business and support as we navigate through this time of unprecedented market change.

* additional models may see an increase as we move further in the first quarter.

– Juan Jose Guerrero III, ASUS Technical Product Marketing Manager

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

When we checked out this year’s new PC graphics cards, we had to give Nvidia and AMD the benefit of the doubt that you could buy them at their sticker price.

It turns out to be an unsafe bet. Although it is clear from social media that some people have managed to buy it in retail, it also appears on eBay that the true price of an RTX 3090, 3080, 3070, 3060 Ti, RX 6800 XT or RX 6800 is much more than MSRP.

AMD’s RX 6800 cards in particular have never appeared in retail long enough to even make an impact. Since my review, I’ve personally been waiting and looking to forgo one, and I’ve never seen an opportunity – other than Nvidia’s cards, where I simply do not take the swarm of buyers to the digital payment bank almost every time. could not beat I tried.

Trump’s rates are not the only thing that could make buying a GPU worse. Bitcoin prices are now at a peak, briefly exceeding $ 40,000 for the first time ever earlier today. The price of Ethereum has doubled in the past month and is also approaching its previous record.

Tom’s hardware point out that on a given graphics card’s MSRP it can take significantly less than a year to recoup your GPU money by exploiting. The last time bitcoin prices skyrocketed, it caused a huge GPU shortage that lasted many months. This was news in May 2018 when Nvidia tweeted that you can finally find a graphics card at MSRP again.

But this time we already have a GPU shortage due to the shortage of pandemic manufactures and the pent-up demand for the performance that the new wave graphics cards and next generation consoles offer. More than half of Americans turned to video games during the pandemic and graphically-intensive games such as Cyberpunk 2077 and Flight Simulator has inspired people to build new computers that can only work with the latest GPUs.

Even though GPU manufacturers did not have a 25 percent rate to deal with, eBay prices make it clear that they have already left money on the table. One way manufacturers can take advantage is to create more expensive versions of the same exact graphics cards with most popular cooling systems and higher clocks, and many of the cards players could actually buy are like that. You can definitely pay $ 600 for a staged $ 400 RTX 3060 Ti if you can find the model in retail or $ 780 for a $ 500 RTX 3070.

Now, however, I wonder if the base price of these cards is also in jeopardy. At the end of November, AMD said Hardware unboxing that the AMD RX 6800 XT should be available from its partners within eight weeks at the original $ 649 MSRP. Almost six weeks later, it does not seem so likely.