News President Trump's 25% tariff on aluminum sparks concerns over rising PC enclosure and GPU costs

[Admin]

PC vendors initially believed the 25% tariff applied only to raw aluminum and steel, but the policy also extends to finished products

President Trump's 25% tariff on aluminum sparks concerns over rising PC enclosure and GPU costs : Read more

 

[Neilbob]

Surely, no company would ever do anything that could possibly increase GPU costs; they would take the small hit to their margins in order to keep prices at the reasonable and affordable level to which we have become accustomed, because what could be more important than the positive regard of their customers!

They have nothing but concern for the unwashed mas- *cough* consumers, right?

RIGHT?

 

[alrighty_then]

I'll pay more but prefer the products move to the US.

 

[Makaveli]

This is why I completed my AM5 upgrade last month. Don't need to buy anything until UDNA Gpu is out and that maybe 2 years i'm good.

 

[punkncat]

I would expect we will just see an expansion of the use of plastics in the cases on the lower end of the cost spectrum.

GPU pricing has never returned to the "pre-mining" day pricing. The card manufacturers got that taste of pillage and haven't corrected yet, IMO. I cannot see the super small amount of AL being used in them become a larger factor than the greed we already are experiencing.

 

[Notton]

I'll pay more but prefer the products move to the US.

USA has minimal bauxite mining.
Even if USA did go large scale, the USA isn't sitting on massive deposits of bauxite to begin with.
USA also hasn't had an alumina refinery since... the 80's or 90's, so there is a 30 to 40yr gap in skilled labor for an alumina and aluminum refinery.
The refining process is very energy intensive, so it's not as simple as plonking down the refinery either. It'll need to be hooked up to an energy grid designed for the load.

 

[Syntaximus]

^ This.

You cannot just flip a switch and say "we're doing things here now."
Infrastructure and logistics are important, but get omitted when you shoot first and ask questions later...

 

[SyCoREAPER]

Dont do politics on here no matter how relevant...

It always derails and the threads locked.

 

[stonecarver]

So on a side note also affecting gamers and beer drinkers the cans them there drinks come it. That's going to be a cash machine.

 

[punkncat]

^ This.

You cannot just flip a switch and say "we're doing things here now."
Infrastructure and logistics are important, but get omitted when you shoot first and ask questions later...

Well, actually, that is how all these things that WERE happening in the USA ended up elsewhere. Someone decided it was better for the shareholders to have cheap labor do it, flipped a switch, closed a refinery, fired off a bunch of people, and plopped it down in some other country.

People have to realize that after this initial pain, we are going to have good blue collar jobs and pay that can support a family return to the United States. There will be other choices than fast food, retail, and service industry. This is going to end up being VERY good for our country if people have the fortitude to let it work.

 

[USAFRet]

Well, actually, that is how all these things that WERE happening in the USA ended up elsewhere. Someone decided it was better for the shareholders to have cheap labor do it, flipped a switch, closed a refinery, fired off a bunch of people, and plopped it down in some other country.

People have to realize that after this initial pain, we are going to have good blue collar jobs and pay that can support a family return to the United States. There will be other choices than fast food, retail, and service industry. This is going to end up being VERY good for our country if people have the fortitude to let it work.

In hindsight, it looks like it was "flipping a switch".
In reality, it took years to move offshore.

 

[punkncat]

In hindsight, it looks like it was "flipping a switch".
In reality, it took years to move offshore.

Sure, but a decision was made, and it happened. The same way that we realize we need to bring this skilled labor back home. It won't happen if all we concentrate on is "it's hard". American cannot continue on the path it has been on for the past, well...my lifetime. We need skilled high paying jobs. We need production and manufacturing. We need to get back to having things that are made well and can be repaired instead of supporting cheap Chinese junk, or worse.

 

[USAFRet]

Sure, but a decision was made, and it happened.

Yes.
The chase for ever lower prices.

Which were partially possible due to lower pay on the assembly line, and far fewer environmental restrictions.

 

[punkncat]

fewer environmental restrictions.

Yes, this is what we compete with given than pretty much anything goes in Asia in this regard.

 

[thestryker]

Unfortunate that it ended up being more far reaching than expected, but I can't say I'm surprised. If this policy sticks around I assume the outcome is just going to be higher prices.

 

[Mr Majestyk]

I'll pay more but prefer the products move to the US.

Do you beleive in the tooth fairy too?

 

[deesider]

Well, actually, that is how all these things that WERE happening in the USA ended up elsewhere. Someone decided it was better for the shareholders to have cheap labor do it, flipped a switch, closed a refinery, fired off a bunch of people, and plopped it down in some other country.

People have to realize that after this initial pain, we are going to have good blue collar jobs and pay that can support a family return to the United States. There will be other choices than fast food, retail, and service industry. This is going to end up being VERY good for our country if people have the fortitude to let it work.

I think the issue with commodity production is that 25% is not enough - the disparity between locally made and imported will be much greater, so at that level of tariff it will simply result in higher raw materials. This can be overcome by continually increasing tariffs until it becomes economical to restart local manufacture (including the capital outlay required). The downside of course is that now raw material prices are even greater than before - perhaps twice as much or more.

This can have the benefit of increasing blue collar jobs and their value, but at the cost of having more expensive consumer goods. Perhaps similar to the 1950's, when wages were relatively high on a global scale, but many consumer goods were luxury items - cars, TVs and other electronic goods were very expensive.

So in the end, you may have 'more' money, but you can't afford to buy anything - does that mean you're richer or poorer?

 

[Syntaximus]

Well, actually, that is how all these things that WERE happening in the USA ended up elsewhere. Someone decided it was better for the shareholders to have cheap labor do it, flipped a switch, closed a refinery, fired off a bunch of people, and plopped it down in some other country.

People have to realize that after this initial pain, we are going to have good blue collar jobs and pay that can support a family return to the United States. There will be other choices than fast food, retail, and service industry. This is going to end up being VERY good for our country if people have the fortitude to let it work.

The flood-gates for outsourcing were opened in the 80s with deregulation.
Much of Corporate America lobbied for years on it until they finally got their wish.

As far as enduring the pain goes, we shouldn't have to on such a scale.

Tariffs are meant to be used tactfully and enacted when you have planned for them first.
This is more like blind-firing at the global market with a 12-gauge.

 

[BigD1]

Well, actually, that is how all these things that WERE happening in the USA ended up elsewhere. Someone decided it was better for the shareholders to have cheap labor do it, flipped a switch, closed a refinery, fired off a bunch of people, and plopped it down in some other country.

People have to realize that after this initial pain, we are going to have good blue collar jobs and pay that can support a family return to the United States. There will be other choices than fast food, retail, and service industry. This is going to end up being VERY good for our country if people have the fortitude to let it work.

Well said. We have to start some where, and this is the start.

 

[Notton]

Well, actually, that is how all these things that WERE happening in the USA ended up elsewhere. Someone decided it was better for the shareholders to have cheap labor do it, flipped a switch, closed a refinery, fired off a bunch of people, and plopped it down in some other country.

People have to realize that after this initial pain, we are going to have good blue collar jobs and pay that can support a family return to the United States. There will be other choices than fast food, retail, and service industry. This is going to end up being VERY good for our country if people have the fortitude to let it work.

But alumina refining is not "off-shored".
It's literally still in North America and refined in Quebec and B.C. Most of the bauxite is imported from Brazil.
Why Quebec and BC? I assume it's because hydro-electricity is very cheap in those locations.
BTW, labor in Canada is not exactly cheap, and quite a few good paying jobs are aluminum casting car parts for various makers.

 

[Gururu]

Well, actually, that is how all these things that WERE happening in the USA ended up elsewhere. Someone decided it was better for the shareholders to have cheap labor do it, flipped a switch, closed a refinery, fired off a bunch of people, and plopped it down in some other country.

People have to realize that after this initial pain, we are going to have good blue collar jobs and pay that can support a family return to the United States. There will be other choices than fast food, retail, and service industry. This is going to end up being VERY good for our country if people have the fortitude to let it work.

Aren't we moving into politics here vs "rising PC enclosure and GPU costs?

 

[punkncat]

Aren't we moving into politics here vs "rising PC enclosure and GPU costs?

Exactly why I have commented time and time against admin posting political articles.

edit to add- as I think about this I would have to say that I personally feel I did pretty well at skirting the issue without being political as much as possible. It would seem to support that view that my posts remain.

 

[ex_bubblehead]

Apparently some here still don't get it. If you can't leave a comment without stepping over the line into politics, even a little bit, then do not post at all. This includes off-topic comments about the author of, or the topic of, the article in question.

To paraphrase a famous quote, "It's better to keep your mouth shut and let people think you're an idiot than to open it and confirm them correct"

 

[ProgrammingKat]

The flood-gates for outsourcing were opened in the 80s with deregulation.
Much of Corporate America lobbied for years on it until they finally got their wish.

As far as enduring the pain goes, we shouldn't have to on such a scale.

Tariffs are meant to be used tactfully and enacted when you have planned for them first.
This is more like blind-firing at the global market with a 12-gauge.

You're correct, and they fled the country. Does anyone remember CaseLabs? They were an "American Made" company that closed its doors after the first set of tariffs (during the first administration in 2020). As far as I could tell, this company hired local artisans, welders, and designers and was a non-polluter, but those tariffs made it impossible for a small shop to stay afloat. I'm so glad I got mine before they went by way of the doo-doo bird.
I find it notable that when people get what they want, they seem to always have "buyer's remorse" rather than engage their memories/brains.

 

[BILL1957]

Well, actually, that is how all these things that WERE happening in the USA ended up elsewhere. Someone decided it was better for the shareholders to have cheap labor do it, flipped a switch, closed a refinery, fired off a bunch of people, and plopped it down in some other country.

People have to realize that after this initial pain, we are going to have good blue collar jobs and pay that can support a family return to the United States. There will be other choices than fast food, retail, and service industry. This is going to end up being VERY good for our country if people have the fortitude to let it work.

Sure, but a decision was made, and it happened. The same way that we realize we need to bring this skilled labor back home. It won't happen if all we concentrate on is "it's hard". American cannot continue on the path it has been on for the past, well...my lifetime. We need skilled high paying jobs. We need production and manufacturing. We need to get back to having things that are made well and can be repaired instead of supporting cheap Chinese junk, or worse.

The problem is we do not have the capability nor the capacity to produce many of the items these tariffs are raising the prices on and it will take multiple years to build the factories, equip them and get them up and running IF the companies do decide to invest in building here.

And regardless the prices will still be higher because the cost to operate a factory and the higher worker wages will still keep prices inflated.

I agree we need to be more independent again but the actual time for these widespread tariffs was 60 years ago when we still had the Manufactuing base and factories up and running that had the ability to produce the items we need, not now when all of those factories have been shuttered for decades and the equipment sold off as scrap and we lack the capability today to even produce the items we are importing!