GPU Prices Get a Small Reprieve as USTR Extends Tariff Exclusions for Nine More Months

Image: NVIDIA

GPU Prices will not have to be increased due to the forthcoming expiration of the China Section 301 tariff exclusions as they have been extended for nine more months. The United States Trade Representative (USTR) announced on Friday that it will extend the exclusions as it continues its comprehensive review.

“WASHINGTON – The Office of the United States Trade Representative today announced a nine‑month extension of 352 product exclusions in the China Section 301 Investigation that had been scheduled to expire at the end of 2022.  These exclusions were initially reinstated on March 28, 2022, and the extension will help align further consideration of these exclusions with the ongoing comprehensive four-year review. “

Trade Wars

The tariffs had begun back in 2018 as the US and China entered a trade war but it was in 2019 that we saw graphics cards and other technology that used components manufactured in China rise by up to 25%. From 2019 to 2021 GPU prices continued to rise and fall as manufacturers “adjusted” their prices to compensate for the tariffs.

The latest extension comes just weeks before it was set to expire, and at a time when consumer graphics cards are already priced at all-time highs. From GPUs to gaming consoles, and other technology, they could’ve seen as much as a 25% increase over current prices. This means the recently launched NVIDIA GeForce RTX 4090 FE priced with an MSRP of $1599.99 could’ve jumped to $1999.99. AMD’s newest 7900 XT could’ve gone from $899 to $1124.99.

The China Section 301 Investigation is a part of a four-year review whose second phase is set to conclude in January. Interested persons have until January 17 to submit input regarding the matter.

“Interested persons may submit comments on the tariff headings containing these exclusions through the USTR portal in the four-year review, which closes January 17, 2023.  Additional information is set out in the following Federal Register Notice.”

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Peter Brosdahl
As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my dad, a used Atari 400, around 1982. Eventually it would end up being a lifelong passion of upgrading and modifying equipment that, of course, led into a career in IT support.

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