Tech

Nvidia and Zotac Call on US to Ditch Trump-Era China Video Card Tariffs

In the context: In addition to the global chip crisis, logistical problems caused by the pandemic, and the rising cost of cryptocurrency, another factor that has driven graphics card prices to obscene heights is Trump-era tariffs imposed on Chinese-made goods. To address the latter issue, Nvidia and Zotac are urging the Biden administration to exempt cards from this additional fee.

PCMag informs that the companies have made a request to the office of the United States Trade Representative (USTR), which Considering restoration of privileges for some items subject to tariffs. Nvidia has highlighted the lack of GPU manufacturing outside of China, which means the cards are subject to a 25% import duty.

“These products are not manufactured in the US, but in limited quantities in Taiwan. Efforts to build new facilities in countries that do not currently manufacture such products (such as the US and Vietnam) have been unsuccessful and have been severely thwarted by the impact of COVID-19, ”Nvidia said.

Nvidia continued to highlight the impact of the pandemic on the GPU industry. “COVID-19 has negatively impacted the ability to move the supply chain and / or increase volumes in other countries in terms of severe restrictions on air cargo / air cargo, the ability to operate facilities in human-intensive production and the ability to find and hire qualified personnel trained in such production “, – added to it.

Zotac told the agency that while it is working with a contractor manufacturer in Taiwan to develop its products, it still relies on China to turn raw materials into components, noting that it cannot find alternative sources.

HP is another company that has highlighted the importance of China as a major source of imports. “HP sources are not currently being manufactured anywhere else with sufficient power, quality, and the required compatibility,” the USTR said.

Other tech giants, including Apple, Google and Intel, have also filed comments urging the USTR to exempt certain Chinese-made electronic goods from tariffs.

The decision whether to exclude a product will depend on whether the product remains exclusively available in China, and “whether reinstating the exclusion will affect or cause serious economic harm to the commentator or other US interests, including impact on small businesses, employment, production volume and critical supply chains in the United States, ”the USTR said in a statement.

Even if the tariffs are increased, we do not know when and if this will affect the retail prices of the cards. But this is definitely something we could use right now, especially as the Radeon RX 6000 lineup will get even more expensive.


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