US Government Delays Imposition of Tariffs On Graphics Cards Which Will Result In A Price Hike of Up To 25%

wccftech.com:

The US Government has delayed the imposition of tariffs intended on consumer graphics cards, as they plan on getting more "feedback" from the industry.

For those unaware, these tariffs that we are talking about have been a topic of debate since the Trump era, when the government at that time wanted to reduce the influence of Chinese-based hardware in the markets. It was proposed that all hardware that is directly being imported from China will face a 25% tariff, which includes graphics cards, motherboards, and multiple devices. This meant that consumers would've faced an unexpected rise in component pricing in the US, however, the Biden administration came to the rescue & lifted the tariffs for a certain period only.

It was expected that the "layer" of tariffs would be imposed starting from January 1st, 2024, however, they have been pushed back to May 31, 2024, as the government believes that it lacks cooperation from the industry. For consumers, this is a piece of great news because a 25% tariff means that a product would see a huge price hike, which wouldn't be progressive for the markets considering their current state. However, trade groups within the US have been annoyed by the decision, claiming that it has affected their business planning.

Graphics cards such as the NVIDIA GeForce RTX 4090 already cost around $2000 US and a 25% price hike would raise the prices to $2500 US. Even entry-level products such as the $299 US RTX 4060 or the $269 US RX 7600 would see a rise to $373 & $336 US, respectively at the base level. If things become more expensive, that could affect the gaming market and the graphics industry as a whole which has just recently started to recover.

The Biden administration has taken steps to hasten the