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PC builders, beware: The Biden administration is preparing to resume tariffs on graphics cards and motherboards assembled in China. Over the past year, the US Trade Representative (USTR) has delayed restoring the Trump-era tariffs, which added a 25% duty on affected Chinese goods. The goal was to gather feedback from the industry and consider modifications as trade associations lobbied the White House to end the tariffs, citing the costs. But on Wednesday, the USTR issued a notice, saying it had recommended to the White House that the “tariffs on covered products be maintained.” On Thursday, a spokesperson for USTR then told PCMag: “We are maintaining tariffs on products currently subject to the action, including the two tariffs you’ve inquired about.” Those tariffs use the codes 8473.30.1180 and 8473.30.5100 and cover graphics cards, motherboards, and desktop PC cases. Other components previously covered under the Trump-era tariffs include trackpad units valued at over $100 and power supply units that output more than 500 watts.
(Credit: USTR)
The Consumer Technology Association had pushed the White House to end the tariffs, but CTA VP of International Affairs Ed Brzytwa tells PCMag, “They’re not getting rid of anything. There are only tariff increases.”So far, the USTR hasn’t officially issued a federal notice to continue the Trump-era tariffs or said what date they’ll resume. But the White House already announced it’s preparing to increase tariffs on select Chinese manufactured goods, including semiconductors, lithium-ion EV batteries, and electric vehicles, in some cases to as high as 100%Brzytwa adds that the US is signaling it’ll continue protectionist trade policies against China, but at the cost of rising consumer prices. “It seems like there’s a competition between the Republican Party and Democratic Party on who can be tougher on China, and who can be more protectionist,” he said.
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The tariffs are designed to punish China for unfair trade policies and alleged intellectual property theft. But in late 2021, several tech companies—including Nvidia, HP, and Zotac—urged the US to exclude their products from Trump-era tariffs, citing the lack of electronics manufacturing outside of China. “Efforts to create new capacity in countries that presently do not manufacture such products (such as the US and Vietnam) were unsuccessful and were severely hampered by the fallout from COVID-19,” Nvidia said at the time.Meanwhile, Zotac told the USTR: “China remains…the major manufacturing base of video graphics cards and personal computers in the industry. The major reason is due to the upstream supply chain remaining mostly in China.”
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