News GPUs Are Getting a Lot More Expensive Due to Tariffs

[Admin]

Expiring import tariff exemptions will lead to increased component prices for PCs, at least for some time to come.

GPUs Are Getting a Lot More Expensive Due to Tariffs : Read more

 

[King_V]

(Nearl voice): "THANK YOU DONALD TRUMP! YOUR LEGACY IS INTACT!!"

(bonus points for anyone who catches the reference)

 

[Deleted member 14196]

They were already way too expensive for me to buy anyway. I’m not spending a grand on GPU

 

[BigD1]

Some products are being shipped from China to Vietnam. Re-boxed in Vietnam, and the box says on the back made in Vietnam. Get product out of the box, and it is clearly labeled made in China.

 

[thepersonwithaface45]

I doubt they'll be much more expensive than they are now. People already refuse to pay scalper prices, upping retail to scalper prices isn't gonna make anyone buy them.

 

[bigdragon]

The XBox SX and PS5 are looking more appealing every day. I'm feeling priced out of PC gaming.

 

[Loadedaxe]

Looks like diy pc gaming is coming to an end, prices are already way too high.

Integrated graphics or console anyone?

 

[salgado18]

You know, you probably don't have to buy a new gpu. Many people already have GTX 1070's or even RX 570. Cyberpunk is running rather "fine" on an R9 380. Play the waiting game, stay on current hardware for longer, it won't hurt. Maybe this is not the time to upgrade, but in the long run, these issues should go away.

Anyway, it is a nice thing to tax imported goods, if there is a push for local production. Brazil does tax a lot (35%), but there is no push for local, so it's bad. I believe the US is smart enough to get some factories to the country, which should get prices back to where they should.

 

[VforV]

Yeah, consoles (and their prices) look better by the day compared to PC gaming, but thinking about that... it means Sony and MS are absorbing some pretty big losses to keep the prices at MSRP in these troubled times...hm.

I wonder if things get worse, if they will still keep the MSRP prices in 2021...

 

[Flayed]

I believe the US is smart enough to get some factories to the country, which should get prices back to where they should.

I can't see US employees lining up for a factory job paying $3.15 per hour like they do in China

 

[Giroro]

Asus's comments are baffling to me. These cards have been out for only a few weeks.
Did Asus not see the tariffs coming, or did they seriously mess something up behind the scenes for their other costs to suddenly rise? I think this is probably going to increase their margins, not just pass-on the cost.
Asus might be willing to tell investors that they are too incompetent to bake known tariffs into the MSRP, but there's no way Nvidia was too dumb to plan one month ahead with their base MSRP. Otherwise, somebody else explain why they decided that their "midrange" GPUs should cost $400-$500 instead of $200-$300.

 

[Flayed]

The XBox SX and PS5 are looking more appealing every day. I'm feeling priced out of PC gaming.

The console games are more expensive so costs are similar over the product lifetime, just fewer upfront costs with a console.

 

[JfromNucleon]

The console games are more expensive so costs are similar over the product lifetime, just fewer upfront costs with a console.

And add to that the people who also have to use their pcs for work

 

[spinkick]

Wait a minute, arent xbox's and ps5's made in china and/or have graphic card components also subject to price increases? I don't think consoles escape this terriff.

 

[drea.drechsler]

I can't see US employees lining up for a factory job paying $3.15 per hour like they do in China

That's at least in part the purpose of the tariffs: it helps to equalize the wage gap. I see it the morally right thing too: China is a communist country and as such the labor force is essentially slave labor to them. Wages are artificially held down in order to keep companies coming there, destabilizing manufacturing in the rest of the world in the process.

The article uses horribly flawed logic when it says bringing some of the production onshore isn't a 'panacea'. It quite clearly IS a panacea if it helps control costs by off-setting the impact of the tariffs. And it's a win-win because it brings jobs back; a couple bucks more for a GPU is a fair price to pay if you're the one looking for work. What quite obviously is NOT a panacea is foolishly depending on the largesse of government exemptions.

I also like the idea of re-sourcing to less hostile countries than China: Singapore, Malaysia, even Vietnam. And why not Australia? UK? EU?

 

[gamerk316]

I believe the US is smart enough to get some factories to the country, which should get prices back to where they should.

No, for the simple reason that it's ultimately more profitable to pay minimum wage overseas and eat the tariff then it is to produce here. That's why unskilled manufacturing has long since left the US, being replaced by cheaper overseas manufacturing or simply being automated. If anything, producing in the US would raise prices due to higher worker wages and healthcare/retirement costs.

 

[spinkick]

Paying non slave labor wages is very expensive.

 

[archv]

I've stopped caring. OH LOOK the price has gone up, on something we can't even get in the first place. I say raise the price by $500 on every card until the miners and scalpers can't handle it anymore and stock gets built up.

 

[gamerk316]

That's at least in part the purpose of the tariffs: it helps to equalize the wage gap. I don't see it such a morally bad thing either: China is a communist country, the labor force is essentially slave labor to them. Wages are artificially held down in order to keep companies coming there, destabilizing manufacturing in the rest of the world in the process.

The article uses horribly flawed logic when it says bringing some of the production onshore isn't a 'panacea'. It quite clearly IS a panacea if it helps control costs by off-setting the impact of the tariffs. And it's a win-win because it brings jobs back; a couple bucks more for a GPU is a fair price to pay if you're the one looking for work. What quite obviously is NOT a panacea is foolishly depending on the largesse of government exemptions.

I also like the idea of re-sourcing to less hostile countries than China: Singapore, Malaysia, even Vietnam. And why not Australia? UK? EU?

The flaw in your argument is that tariffs will not bring jobs back. They won't (and don't) since there's no incentive for manufactures to simply raise prices to offset the tariff costs (due to lack of competition), which is what you see them doing. The only ones who lose in that situation is the consumer, who has to pay more for the same products.

 

[drea.drechsler]

No, for the simple reason that it's ultimately more profitable to pay minimum wage overseas and eat the tariff then it is to produce here. That's why unskilled manufacturing has long since left the US, being replaced by cheaper overseas manufacturing or simply being automated. If anything, producing in the US would raise prices due to higher worker wages and healthcare/retirement costs.

Manufacturing of the finished GPU's is highly automated and capital intensive. The labor is mostly highly skilled and technical. Yes, in the US the rates will be higher but it's swamped by the cost of the capital investments required for the automated equipment and facilities. The biggest impediment will be government regulation and red tape, at all levels.

 

[drea.drechsler]

The flaw in your argument is that tariffs will not bring jobs back. They won't (and don't) since there's no incentive for manufactures to simply raise prices to offset the tariff costs (due to lack of competition), which is what you see them doing. The only ones who lose in that situation is the consumer, who has to pay more for the same products.

By themselves tariffs wouldn't so you're probably right. What has to happen now is governments incentivizing industry to establish factories. There are tried a true tools they've used to do that, including tax incentives and grants of various sorts. They expire, of course, but once established and producing the tariffs will help by preventing unfair competition from flooding the market with artificially 'cheap' products.

 

[waltc3]

I don't think much of the NYT--I'll just say this. GPUs currently are on the exempted tariff list, which is why they are not priced with tariffs currently--that exemption is due to expire shortly--which has prompted another NYT "panic" article written prematurely, as usual. There is no reason why this first extension cannot be extended indefinitely. I guess the NYT forgot about that little detail--like it always does when it writes of gloom and doom. I think the general American press today leaves much to be desired in the way of facts and intelligent perspective.

Right now, scalpers and production woes are responsible for 100% of the sick, idiotic prices we've all seen on the GPUs none of us can buy. As far as pricing goes, scalpers are 100% responsible, tariffs 0%, imo...😉 Let's all hope supply constraints will greatly ease very soon--they have to--otherwise AMD is going to have a lean first quarter!

 

[Uniblab]

Expiring import tariff exemptions will lead to increased component prices for PCs, at least for some time to come.

GPUs Are Getting a Lot More Expensive Due to Tariffs : Read more

I thought it would happen but for the manufacturer to tell us all that its gonna happen is kinda funny because "tarriffs" dont affect the supply chain of the manuf. They affect the supply chain of the importer. A tarriff hits the pocket of the importer so how does it affect prices where they are being made? Does this mean that graphic cards have a oem that is also the importer so when it hits the states the manuf has to raise prices because of the extra charges they have to pay? Somehow making up what is seen as less profit to their partners. I thought it would happen but the cost of manufacturing stays the same<basically>. Who is paying the increased prices but the consumer, unless the oem now is seeing more direct charges because of the tariff.

 

[Phaaze88]

I said it once before, and I'll say it again...
I miss being able to buy a top tier gpu for ~700USD.
It all went to hell once Turing came out.

 

[Krotow]

I miss being able to buy a top tier gpu for ~700USD.
It all went to hell once Turing came out.

Extra few billion transistors, extra RAM chips and added R&D does not come for cheap. There is a sane reason why modern non-trivial computing hardware cost more. Luckily prices will drop when next hardware generation will appear.