Nvidia and Zotac urge US to remove Trump-era China’s tariffs on graphics cards

In context: In addition to the global chip crisis, logistical problems caused by the pandemic and the rise in the value of cryptocurrencies, another factor that has caused the price of graphics cards to rise to obscene levels is the tariffs of the era. Trump applied to products made in China. To address the latter issue, Nvidia and Zotac urge Biden’s management to exempt the cards from this additional cost.

PCMag reports that the companies made the request to the office of the U.S. Trade Representative (USTR), which is considering reinstate exemptions on some items covered by tariffs. Nvidia specifically cited the lack of GPU manufacturing outside of China, which means the cards are subject to a 25% import duty.

“The products are not made in the US and only in limited quantities in Taiwan. Efforts to build new capacity in countries that do not currently manufacture such products (such as the United States and Vietnam) were unsuccessful and were seriously hampered by the consequences of COVID-19, “said Nvidia.

Nvidia continued to emphasize the effect of the pandemic on the GPU industry. “The ability to move the supply chain and / or increase volume in other countries was adversely affected by COVID-19 in terms of severe limitations on air cargo / freight capacity, the ability to operate facilities in intensive manufacturing in people and the ability to find and hire qualified employees trained in manufacturing, “he added.

Will they get cheaper if Zotac gets his wish?

Zotac told the agency that although it has been working with a contracted manufacturer in Taiwan to build its products, it still relies on China to convert raw materials into components, noting that it cannot find alternative sources.

HP is another company that highlighted the importance of China as the main source of imports. “HP’s source products are not currently produced elsewhere with the necessary capacity, quality and compatibility,” he told the USTR.

Other tech giants, including Apple, Google and Intel, have also submitted comments urging the USTR to make certain electronics made in China exempt from tariffs.

The decision to exempt an item will depend on whether the product remains exclusively available in China and “whether reinstatement of the exclusion will affect or result in severe economic harm to the commenter or other US interests, including impact on US interests. small businesses, jobs, manufacturing, and critical supply chains in the United States, “said the USTR.

Even if the fees are removed, we don’t know when, or if, it will be reflected in the cards’ retail prices. But it’s certainly something we could use right now, especially as the Radeon RX 6000 line is set to become even more expensive.