The United States eliminates import tariffs from China, which raised the prices of GPUs and motherboards

The United States eliminates import tariffs imposed on Chinese manufacturers, which raised the price of GPUs, motherboards and other hardware components considerably.

The Office of the United States Trade Representative placed internal circuit boards (PCBs) back on the exclusion list. to import tariffs applied to goods produced in China.

The move is expected to have a direct effect on the price of manufacturing electronic components such as graphics processors and motherboards, among other hardware components.

The change should represent a direct reduction in the price of parts shipped to end consumers. The import tariff, which varies between 7.5% and 25%, came into effect in January 2021 amid a trade war between the two countries.

Who would benefit most from these changes in import tariffs

The main beneficiaries should be those looking for new motherboards, components that have not kept pace with the increased demand for GPUs caused by COVID-19. Although the end of the tax is positive, the bottlenecks in the production lines, (intensified by the war between Russia and Ukraine, the lack of neon gas, among other things) will still have to be resolved and may mean that the savings are not will be transferred to consumers at first.

It will likely take a while for the end of the tariffs to trickle down to the GPU market, although average prices in the segment have already been declining in recent months.

“Although the drop in prices indicates a gradual return to normality in supply and demand, retailers have already built up their stocks on products that were selling at higher prices,” says the outlet.

The end of the tax comes at a time when NVIDIA has reduced production costs for its manufacturing partners by 8 to 12 percent. Although component prices have already dropped on international websites, it is not until the second half of 2022 that the market is expected to return to pre-pandemic prices, thanks to the normalization of supply lines and the launch of of new component options. Similarly, if we talk about prices, here in Argentina everything works the other way around the norm. Hopefully local dealers will accommodate within reason.

And what do you think of the disappearance of these tariffs that inflated the prices of GPUs?

Source: Tom’s Hardware