US Extends Pause on 25% GPU Tariff for One other 12 months


PC builders within the US will not have to fret a couple of 25% tariff on graphics playing cards from China for not less than one other yr.  

The Trump administration will delay the implementation of “Part 301” tariffs on Chinese language-assembled GPUs, motherboards, and PC instances till not less than Nov. 10, 2026. The duties have been speculated to take impact over the weekend, however on Nov. 1, the White Home signaled it might delay Part 301 tariffs for an additional yr after reaching a commerce cope with Beijing. The Workplace for the US Commerce Consultant (USTR) then quietly confirmed the pause forward of Thanksgiving.

Part 301 tariffs, which originated through the first Trump presidency, have been anticipated to return this yr. Nonetheless, in a shocking transfer, the White Home twice delayed reviving them, presumably as a result of Trump was already implementing or threatening to enact different tariffs on China and quite a few different nations, together with Vietnam and Cambodia. 

Business commerce teams had additionally been lobbying the Trump administration to pause Part 301 tariffs. “Whereas firms proceed to diversify provide chains, international capability for crucial inputs and specialised parts remains to be closely concentrated in China,” the Client Know-how Affiliation (CTA) stated in an October letter to the USTR. “The place third-country choices exist, companies usually face greater prices, inconsistent provide, or longer lead instances, making speedy substitution impractical. 

The CTA additionally warned that many producers have been “returning to China,” as a consequence of Trump’s wide-ranging tariffs on quite a few nations. “As an alternative of shifting provide chains out of China, many have determined that the chance of sourcing from different markets amid greater tariffs and widespread and growing tariff uncertainty is simply too nice,” in keeping with the group, which represents high expertise firms together with Apple, Nvidia, and Samsung. 

We’ll be curious to see how the USTR approaches the tariffs subsequent yr and whether or not there will probably be one other delay. That stated, it is potential Trump might goal GPUs by way of one other set of chip-focused tariffs, Part 232, though that is additionally going through a delay to keep away from angering Beijing.

Within the meantime, the choice to maintain the Part 301 tariffs on the again burner comes as pricing for a lot of PC graphics playing cards has considerably normalized. However there’s concern it won’t final. The demand for AI information facilities has been consuming into reminiscence manufacturing, inflicting prices for RAM, particularly DDR5, to skyrocket to over 200% in latest months. In consequence, a pack of 64GB DDR5 can now value over $500. The scarcity additionally dangers impacting video reminiscence manufacturing, which might result in value will increase for GPUs subsequent yr.

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