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A 25% tariff on Chinese-made graphics cards won’t return for at least another 90 days.
The “Section 301” tariff was supposed to re-activate on Sept. 1, but on Thursday, the Office of the United States Trade Representative (USTR) decided to delay it again.
The 90-day pause means the 25% duty will not resume until Nov. 30, according to the government’s notice. That’s good news for PC builders since GPU supplies and prices have started to stabilize after the ridiculous price-gouging that occurred earlier this year.
USTR is signaling that feedback from the industry is behind the pause; many tech companies rely on Chinese factories to build their products. “The US Trade Representative’s decision to extend these exclusions takes into account public comments previously provided, previous advice of the advisory committees, and the interagency Section 301 Committee,” it says.
This is the second time the Trump administration has delayed re-imposing the tariff. On May 31, USTR kicked off the first 90-day delay. Thursday’s government notice adds that the agency could do so again or modify the tariffs.
The 25% tariff would have been on top of a 20% duty the Trump administration imposed on Chinese imports in March, which has already affected PC components.
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In other words, PC builders don’t have to worry about a 45% total tariff on Chinese-made parts — only a 20% one, for now. Trump is also preparing to tariff foreign-made chips, at levels as high as 300%. But it’s unclear how the policy will be implemented, and whether it’ll target GPUs. In the meantime, PC component companies, including Asus and Asrock, have been shifting their manufacturing out of China to other markets, including Southeast Asia.
The dormant 25% tariff originated during the first Trump presidency to address unfair trade practices from China. Under the 90-day pause, Chinese-made imports, including graphics cards, motherboards, PC cases, and trackpad units valued under $100, have been exempt.
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About Michael Kan
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