Leading GPU manufacturers Nvidia and AMD are racing against time to stockpile their upcoming graphics cards in US warehouses before January 20, when new Trump administration tariffs could drive prices up dramatically.
The planned tariffs would impose 10-20% fees on imported goods, with Chinese imports facing a steep 60% rate. This move aims to incentivize US-based manufacturing but could lead to substantial price increases across consumer electronics.
While both Nvidia and AMD partner with TSMC and Samsung for chip production, final assembly of graphics cards - including cooling systems, PCBs, and other components - largely happens in China through companies like Foxconn and BYD. Major board partners such as Asus, MSI, Gigabyte, and Zotac also conduct much of their manufacturing operations in China.
The timing is particularly critical as Nvidia prepares to launch its RTX 5000 series and AMD readies its Radeon 9000 series at CES. Industry analysts suggest the tariffs could push Nvidia's rumored flagship RTX 5090, expected to launch at $1,799, to over $2,500 - a 40% increase.
The impact extends beyond graphics cards. According to a Consumer Technology Association report, the tariffs could increase laptop prices by 45%, smartphones by 25.8%, monitors by 31.2%, and gaming consoles by 40%.
While manufacturers are working to build inventory before the deadline to minimize immediate price impacts on consumers, industry experts warn that price increases may become unavoidable once pre-tariff stock depletes.
The rush to beat the deadline highlights growing concerns about the broader effects of trade policies on consumer technology prices, as manufacturers grapple with the challenge of maintaining competitive pricing in an increasingly complex global market.