PC hardware is already expensive, but proposed tariffs that could go into effect next year might cause prices to skyrocket.
I’m going to be analyzing the impact of Donald Trump’s proposed tariffs on the price of PC hardware in the future, using not only some estimates that are available now, but also the historical context of tariffs during Trump’s first administration. My point is not to say anything political in nature, but instead to take a serious look at just how much these tariffs will affect PC hardware pricing.
The original tariffs that were supposed to go into effect in 2019 didn’t manifest at first, thanks to an exclusion that was offered as the pandemic ramped up. In early 2021, however, the exclusion expired. Not only did the tariffs keep GPU prices high, but Asus, at the time, also said that it would be raising the prices of its motherboards, and other companies followed suit.
A big reason why is that the tariffs were lifted. In late 2021, a group of companies spearheaded by Nvidia asked the Biden administration to remove the tariffs, and they were joined by HP and Zotac in asking for the exclusion that was applied in 2020. In 2022, the tariffs were lifted, and immediately Asus said it would be lowering its prices by up to 25% — the same amount as the tariff. Just days before, prices on GPUs dropped significantly, barreling back toward list price.
Those numbers alone show how big of a role tariffs on China play in the price of PC components . Although PC component manufacturing is focused in the Asia-Pacific region overall, including countries like Taiwan, Vietnam, and Korea, nearly all hardware touches Chinese-made components in some form. There are PCBs, fans, MOSFETs, capacitors, and a slew of other components that go into PC hardware that come from China.
The CTA doesn’t have any estimates for PC hardware in particular. However, there are some parallels. For laptops, the CTA says China currently represents 79% of all U.S. imports of laptops and tablets, and 87% of imports for video game consoles. Prebuilt desktop computers are a bit different, representing only 2% of imports — though that’s largely because these PCs are assembled and imported through Mexico.
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