President Joe Biden’s administration is planning on reinstating elevated import tariffs on graphics cards and motherboards produced in China. Last year, the United States’ Trade Representative (USTR) postponed the introduction of a 25% special import tariff on graphics cards and hundreds of other critically significant components for the American economy.
Last year, the U.S. government justified the delayed application of higher tariffs on Chinese goods due to wanting to gather feedback from industry representatives and review necessary adjustments. This was because U.S. trade associations were lobbying the White House for a full cancellation of these tariffs, citing significant costs. However, on the previous Wednesday, the regulator published a notice suggesting the White House should retain higher import duties on specific Chinese goods.
Items impacted by these higher tariffs include graphics cards, motherboards, and desktop PC cases, as well as other components previously listed for prohibitive tariffs by former President Donald Trump’s administration. This list also includes trackpads priced above $100 and power supplies of more than 500w.
The Consumer Technology Association (CTA), representing 1,376 consumer technology companies in the U.S., appealed to the White House for the cancellation of higher tariffs. Still, the U.S. government has made no response. The elevated tariff law has not been officially enacted, and the USTR has not disclosed when this will occur. The White House has announced their preparation to increase import duties (in some cases double) for a range of Chinese industrial goods, such as semiconductors, lithium-ion batteries for electric vehicles, and the vehicles themselves.
The raised import duties aim to punish China for its unfair trade policy and claimed theft of intellectual property, according to portal PC Mag. In late 2021, several technological companies, Nvidia, HP, and Zotac, called for the U.S. government to exclude their products from Trump-era elevated tariffs laws, citing a lack of production capacity outside of China.
“Efforts to create new capabilities in countries that currently do not produce such products (like the U.S. and Vietnam) were unsuccessful and significantly impeded by the effects of Covid-19,” stated Nvidia.
“China continues to be the main manufacturing base for the supply of graphics cards and personal computers. The primary reason for this is that the ascending supply chain is located primarily in China,” Zotac reported to the USTR.
