Recently Donald Trump had waged a trade war with China where tariffs of 10 percent would be charged on $200 billion of imports, taking effect on monday. In a September 17 statement, Trump had said that the tariff would rise to 25 percent on 1st of January 2019.
The war might lead to increased Graphics card prices this holiday season. A source from CNBC said that the tariffs apply to individually sold graphics cards and not cards already inside prebuilt PC systems.
“This is a problem because the vast majority of graphics cards are currently made in China”, said Shrout Research’s Ryan Shrout. Gamers will not take any price inrease lightly and will “lash out”. He expects some graphics cards manufacturers to transfer production to Taiwan to avoid the tariff, but that’s no easy task.
“PC gamers will likely see increased prices on graphics cards with the implementation of this tariff, an unfortunate side affect of the continued policies of the Trump administration,” Shrout wrote in an email Monday. “This is unfortunate timing for NVIDIA as it was already under pressure for the prices of its new RTX product family, and it is unlikely that it or its partners will simply absorb the added costs of the tariff.”
According to Bank of America Merrill Lynch, the prices of Nvidia’s new RTX graphics cards could rise up by 5 to 10 percent in coming months.
When asked for a comment, both AMD and Nvidia said they are working with their graphics card manufacturing partners to reduce the impact of the tariffs on their products.