The U.S. Trade Representative’s Office has once again postponed reinstating a 25% tariff on China-imported computer hardware, including graphics cards. Originally forecasted to resume at the end of August, the waiver has now been stretched till the end of November 2025. This implies that for a minimum of three more months, there won’t be any hefty import charges on GPUs, motherboards, and SSDs manufactured in China and exported to the U.S.
This decision came from the agency as a response to public remarks as well as persisting supply chain barriers. In addition, it was noted that production facilities outside of China are not yet prepared to take over the manufacturing volume. The inception of this tariff situation can be tracked back to 2018 during the Trump administration when Section 301 of the new policy set a 25% tariff on a significant portion of Chinese electronics.
Caught in this comprehensive tariff net were graphics cards and motherboards. However, they later received a temporary exemption in 2019. This exclusion has been consistently extended since its initial issuance, often quite close to the wire, by both the Trump and Biden administrations.
This exemption had been projected to cease on June 1 of this year. Nevertheless, the USTR extended it until the end of August. Now, barely before the impending deadline, the agency has once again been generous in pushing the cutoff to late November.
Trade regulators have expressed that, based on circumstances, they may consider additional extensions or further adjustments. This extension presents a sigh of relief for GPU manufacturers and partners, thwarting an abrupt 25% increase in import expenses.
Most consumer graphic hardware is still primarily produced in China, with transitioning production elsewhere not an immediate or inexpensive solution. In the absence of this exemption, the tariff costs would befall on the distributors and OEMs, which would subsequently mean increased prices for the consumers.
Suppliers have been fervently lobbying to preserve this exemption, warning that tariffs would disrupt pricing stability within the desktop, laptop, and DIY build market segments. Companies such as ASRock pointed out in 2024 that lack of this exemption would inevitably stir up the GPU market.
In the absence of this carve-out, an already vulnerable GPU market prone to shortages and surging prices would spiral into disorder. While these additional three months of tariff uncertainty might not bring solid geopolitical reassurance, the situation significantly impacts the computing hardware enthusiasts and gaming community.
The aftermath of immense price volatility year has barely settled, where prices saw frequent hops due to meager inventory. This tariff deferral means that the fragile recovery won’t have to face an abrupt 25% additional charge.
Even though high-end cards might still demand a heftier cost, the relief is that the overnight inflation due to policy change has been averted. The same holds true for pre-built systems and gaming laptops, which often use GPUs and boards assembled in China.
For DIY builders, the extension introduces added flexibility for the upcoming autumn upgrade season. This allows for more time to purchase components without concerns of the U.S. trade wars destabilizing the market overnight, hence preventing any sudden rise in market prices.
The post US Tariff on Chinese-made Computer Hardware Postponed Again appeared first on Real News Now.
About Author
