NVIDIA and AMD are eager to ship next-generation GPUs to avoid tariffs after Trump takes office
Dec 27,2024
Nvidia&AMD are now forcing AIB partners to ship next-generation GPUs earlier than expected to cope with tariffs of up to 40%. According to reports, NVIDIA and AMD are taking "desperate" measures to ship their next-generation GPUs to warehouses located in China to avoid the upcoming wave of tariffs by the Trump administration.
Ctee reported that GPU manufacturers such as AMD and NVIDIA have begun to strive to ship graphics cards to mainstream markets in the United States before January 20th to avoid tariffs that could significantly increase prices. It is said that AIB's partners have now significantly increased the production of next-generation GPUs, which is an unusual trend mainly due to supply constraints at the beginning.
Given that AMD and NVIDIA have planned to take strict measures to prevent supply chain "information" leakage, it is rumored that the two companies have started production of the next generation GPU in early December to ensure that the equipment arrives at the expected facilities in the United States before the presidential inauguration ceremony on January 20th. This is another measure to generate more profits as tariffs are about to raise consumer prices, but manufacturers will benefit more from their initial GPU inventory.
Given that most consumer grade gaming GPUs come from China, it is expected that prices will soar by 40% or even higher as manufacturers decide to reflect tariffs in consumer prices. Interestingly, Microsoft, Dell, and HP have also taken similar measures to accelerate production processes in response to Trump's policies.
Although we don't know the suggested retail prices for Nvidia and AMD's next-generation GPUs, a reasonable price for the GeForce RTX 5090 could be $1799. Therefore, considering the 40% tariff, Nvidia's flagship GPU may be priced at around $2500. This tariff will shake the pricing of the consumer GPU market and also stimulate demand for second-hand GPUs.
Similarly, as the policy has not yet been officially implemented, we cannot determine the price after tariffs, but there will definitely be a significant increase.
Ctee reported that GPU manufacturers such as AMD and NVIDIA have begun to strive to ship graphics cards to mainstream markets in the United States before January 20th to avoid tariffs that could significantly increase prices. It is said that AIB's partners have now significantly increased the production of next-generation GPUs, which is an unusual trend mainly due to supply constraints at the beginning.
Given that AMD and NVIDIA have planned to take strict measures to prevent supply chain "information" leakage, it is rumored that the two companies have started production of the next generation GPU in early December to ensure that the equipment arrives at the expected facilities in the United States before the presidential inauguration ceremony on January 20th. This is another measure to generate more profits as tariffs are about to raise consumer prices, but manufacturers will benefit more from their initial GPU inventory.
Given that most consumer grade gaming GPUs come from China, it is expected that prices will soar by 40% or even higher as manufacturers decide to reflect tariffs in consumer prices. Interestingly, Microsoft, Dell, and HP have also taken similar measures to accelerate production processes in response to Trump's policies.
Although we don't know the suggested retail prices for Nvidia and AMD's next-generation GPUs, a reasonable price for the GeForce RTX 5090 could be $1799. Therefore, considering the 40% tariff, Nvidia's flagship GPU may be priced at around $2500. This tariff will shake the pricing of the consumer GPU market and also stimulate demand for second-hand GPUs.
Similarly, as the policy has not yet been officially implemented, we cannot determine the price after tariffs, but there will definitely be a significant increase.