Trade wars may cause graphics card prices to rise by 10% in the US
Recently, the United States announced a 10% tariff on imports of 200 billion US dollars from China. The tax rate will be adjusted to 25% from January 1, 2019. In the list of taxable goods, the graphics card is listed. Affected by this, some analysts said that in the next few months, NVIDIA's RTX series of graphics cards will increase the price by 5% to 10%.
According to analysts, taxation on graphics cards may have a greater impact, as most of the current graphics cards are produced in China. This is bad news for gamers and NVIDIA. It is reported that NVIDIA's RTX series graphics cards will increase by 5% to 10% in the coming months and predict that some graphics card manufacturers will move production out of mainland China to avoid tariffs, but it takes time.
AMD and NVIDIA issued a statement after the price increase forecast was reported. AMD stated that “we are working closely with our customers and partners to mitigate the potential impact of tariffs on AMD products. From what we know today, we believe that US tariffs will not have a significant impact on our business.” NVIDIA said “The direct impact of tariffs on us is relatively small. We understand that most of our partners have or are transferring the affected assembly work to Taiwan and Mexico, which are not affected by tariffs.”
In addition, other manufacturers such as MSI and Gigabyte are considering moving their production lines to Mexico, Vietnam and other places, but this takes time, it seems that temporary price increases are unavoidable.