News GPU Tariff Exemption Expires December 31, Could Spell Higher Graphics Card Prices

[Admin]

Trump-era tariffs on graphics cards are set to return on January, 1, 2023. For the past year, GPUs have been granted an exemption.

GPU Tariff Exemption Expires December 31, Could Spell Higher Graphics Card Prices : Read more

 

[umeng2002_2]

No one is forcing graphics cards to be made in China. I find it funny that the US is taxing the import of their own technology (GPUs designed in America).

 

[3ogdy]

If the price increases are a product of a manufacturer's desire to make more money, there's a solution.
The proper way to counteract this practice is to stick to a given price point. That way they'll fail to push you higher up the price range.

They'll see the sales numbers and adjust the pricing accordingly and / or performance accordingly. After all, if it's gaming we're talking about, they'll end up killing game sales if their mid-range cards are no longer capable-enough to run games properly.

 

[Zerk2012]

Probably not much of a impact since they will start shipping from China to Vietnam to avoid these like other items are already being done.

 

[umeng2002_2]

I do wish this article did more research into tariff laws. Is the total value taxed? Is it a 25% tax or a 25% INCREASE in tax? Is the value of the GPU die not taxed since those are made in Taiwan? Are the VRAM chips' value not taxed since those aren't made in China? Is it just the assembly labor and $40 for the cooler and PCB that is taxed since those are the actual products of China?

 

[Giroro]

Nvidia is going to keep raising prices worldwide, regardless of whether or not there's a tariff in the US.
There's nothing any person, group, company, or politician on earth can do to stop or even slow Nvidia, or any other tech Giga-monopoly. So, you might as well just find a cheaper hobby with mass-market appeal. Have you considered joining a country club, or dressage?

 

[helper800]

Nvidia is going to keep raising prices worldwide, regardless of whether or not there's a tariff in the US.
There's nothing any person, group, company, or politician on earth can do to stop or even slow Nvidia, or any other tech Giga-monopoly. So, you might as well just find a cheaper hobby with mass-market appeal. Have you considered joining a country club, or dressage?

Gaming is one of the cheapest hobbies in the world. Go buy a used computer for 150 dollars off a pallet and put in a 6 year old card for 50-100 on ebay and you have a computer that can play most games at console fps or more at reasonably low settings.

Can also just get a used console of your choice for cheap.

 

[hotaru251]

No one is forcing graphics cards to be made in China.

shareholders & jensen


anything to make a few more dollars.

There's nothing any person, group, company, or politician on earth can do to stop or even slow Nvidia, or any other tech Giga-monopoly.

incorrect.
the "group" that can are the users.

It would only take everyone shafting nvidia for 1 generation to make em see reality.

issue is ppl refuse to do so.

 

[Giroro]

shareholders & jensen


anything to make a few more dollars.

incorrect.
the "group" that can are the users.

It would only take everyone shafting nvidia for 1 generation to make em see reality.

issue is ppl refuse to do so.

If Customers can't stop buying Nvidia's product, then that kinda proves my point. And to my point, the only way to win Jensen's game of Monopoly is to refuse to play and find a new hobby.

AMD is a small-potatoes follower, not real competition. You're still paying price/performance set 1:1 to match Nvidia, taking in account an offset to compensate for their inferior tech. That's why AMD always announces their products after Nvidia. They have to wait for Jensen to tell them what their GPUs are going to cost.

But you don't have to play video games, you know. Especially since the games coming out right now are all sequels that are worse than the previous versions. I could handle when games used to be released entertainment products. But the current "pay us to work a high-stress job" and "You're and addict and we know it, so keep paying all your money forever" pricing models are exhausting. It's like gaming corporations bought all their executives from Big Tobacco or drug cartels, or something.

 

[ironmanjakarta]

China will just eat the tariff. Prices will not go up.

 

[ohio_buckeye]

China will just eat the tariff. Prices will not go up.

You’ve seen the prices of the 4090 and 4080? Seems to me they want prices to go up across the board.

 

[btmedic04]

the last time gpu tariffs were in place, gpu prices went up. when the exemption was enacted, gpu prices never went back to pre-tariff prices. that should tell you all you need to know

 

[Dakkoch]

Wait isn't all the gpu made in taiwan? This tariff only applies to gpu made in china. I know my 6600xt said its made in taiwan

 

[in_the_loop]

So, for me this means I will never ever update my 1080ti.
If the prices are going up from todays already skyhigh prices (outside of the US too, I'm in Sweden), then there will be no viable alternative to upgrade to. Until an upcoming very bottom of the line 5050 or 6050 eventually becomes clearly faster than a 1080ti(the 4050 won't) at $499...

 

[ohio_buckeye]

Well right now you may not have a need. I think the the rx 6600/6600xt for the 200-300 dollar range are probably close to the range of the 1080/1080ti. Hopefully we are getting to a point where that level or higher performance is common. It’s always fun to go faster but I agree, no intention of paying 1600 or 1200 for a gpu.

You see prices of new stuff, and I’ve already got a 6700xt, but you find yourself asking should I go get a 6900xt or something to that effect on the higher end of the current generation so you know you are set for a few years.

I don’t know that the 1080ti supports dlss, but with that and fsr maybe it will help as gpus get older to survive longer.

One consideration you might make is how much would your 1080ti sell for? If you could sell it for a decent amount and apply that towards say an rx 6800 it might be worth considering.

 

[hannibal]

Well... Good GPUs allready are too cheap, so this will remedy the situation...

They will just import as many GPU before the tax affects, to this will only affect the new gpus that are released next year and later. Just imagine that 4070 could be as expensive as 4080 That would be fun!
This also can kill AMD change to compete at the high end, because 7000 series comes too late to the market to avoid most of this increase... Unless all starting production goes to USA first and that is not gonna happen.

 

[helper800]

Wait isn't all the gpu made in taiwan? This tariff only applies to gpu made in china. I know my 6600xt said its made in taiwan

As far as the US government is concerned, Taiwan is China, this however gets into politics and I suggest we leave it there.

 

[bit_user]

As far as the US government is concerned, Taiwan is China, this however gets into politics and I suggest we leave it there.

Not necessarily. There are/were special trade carve-outs for Hong Kong (I think they were eliminated, in the past couple years, following the crackdown on pro-democracy protests), and that is much more part of China than Taiwan.

What's true about the US Government's relationship with Taiwan is that there are no formal diplomatic relations, although there are plenty of backchannel communications. We even had a flurry of Congress members make visits, this past fall.

However, even Taiwanese companies tend to do their manufacturing on the mainland. So, it's probably a moot point for the sake of this topic.

 

[bit_user]

Probably not much of a impact since they will start shipping from China to Vietnam to avoid these like other items are already being done.

That adds cost, which will still hurt sales. At some point, it could be cheaper just to move manufacturing to another country.

Also, lying about a product's origins seems like it could run afoul of WTO rules or something. So, I don't know if that's exactly risk-free. Vietnam might have a stake in trying to avoid such practices.

I do wish this article did more research into tariff laws. Is the total value taxed? Is it a 25% tax or a 25% INCREASE in tax? Is the value of the GPU die not taxed since those are made in Taiwan? Are the VRAM chips' value not taxed since those aren't made in China? Is it just the assembly labor and $40 for the cooler and PCB that is taxed since those are the actual products of China?

Good questions. But, unless the answers are easy to find (e.g. on business news sites), it's not reasonable for a tech reporter to go pouring through reams of import and tariff laws & regulations. There are expensive lawyers whose entire job is to answer such questions.

China will just eat the tariff. Prices will not go up.

The margins aren't big enough for them to absorb such a big price hike, even if they wanted to.

 

[bit_user]

incorrect.
the "group" that can are the users.

It would only take everyone shafting nvidia for 1 generation to make em see reality.

issue is ppl refuse to do so.

This gave me an idea. What if reddit staged a hostile takeover, in the spirit of the GameStop phenomenon? Get a bunch of disgruntled gamers to buy Nvidia stock and collectively establish a controlling share (I think even like 10% is enough to put a vote to the shareholders, although I don't know if individual shareholders can pool their shares like that...). Then, everyone who has shares can vote on the resolution.

 

[Zerk2012]

That adds cost, which will still hurt sales. At some point, it could be cheaper just to move manufacturing to another country.

Also, lying about a product's origins seems like it could run afoul of WTO rules or something. So, I don't know if that's exactly risk-free. Vietnam might have a stake in trying to avoid such practices.

This has been going on for years already.
https://asia.nikkei.com/Economy/Trade-war/Vietnam-cracks-down-on-tariff-dodging-export-detours

They also just will stick made in Vietnam stickers on them instead of made in China.

Vietnam says that China is mislabeling products as Vietnamese to avoid U.S. tariffs

According to Vietnamese officials, Chinese firms\u00a0first export\u00a0products to Vietnam, then change\u00a0the labeling on packages before exporting the goods.

www.usatoday.com

Do you really think China could care about anything along the lines of copy right infringements, patents, or the WTO.

 

[bit_user]

Do you really think China could care about anything along the lines of copy right infringements, patents, or the WTO.

Well, the WTO actually establishes courts in which cases of trade infringement can be heard. So, there are actual enforcement mechanisms for China to fear. However, there's not a strong history of China following WTO rules, so it doesn't appear to be a very effective deterrent for them.

 

[Zerk2012]

Well, the WTO actually establishes courts in which cases of trade infringement can be heard. So, there are actual enforcement mechanisms for China to fear. However, there's not a strong history of China following WTO rules, so it doesn't appear to be a very effective deterrent for them.

Sorry I respectfully disagree China could care less it never has or will. China to Vietnam is only about 800 miles.
EDIT depending on where it's being shipped to it's just a stop that it's already going right by.

I think we will just have to agree to disagree on this one I don't think they are any answers.