-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
Manufacturers Respond to Price Impact from Tariffs (PC Parts)
- Thread starter LQX
- Start date
It is, but the prices for the other components such as memory are still high and havent gotten lower and will now continue to increase along with everything else.
So now PC building is also dependent on how we vote in the future. Not the most urgent thing but wholly annoying for people who've waited for fairer prices during the card shortages.
I m getting some perverse pleasure from this. A lot of people only change once they are negatively impacted by something.
Bring on the stupid trade wars. Where the average american gets burned as usual while the rich prosper. American capitalism.
Bring on the stupid trade wars. Where the average american gets burned as usual while the rich prosper. American capitalism.
It's mentioned in the video -- manufacturers will likely increase prices worldwide to compensate for the lower volume sales in the US due to the tariffs in order to stabilize their revenue stream. What it affects, how much it affects it, etc, remains to be seen of course. So there will likely be some repercussions felt in other parts of the world.
Microsoft is so rich they could eat the tariff's for breakfast, but this is gonna hurt Sony & Nintendo for sure.
If stuff is in the country already and in warehouses it wont be affected by these tariffs, but all future products will see hikes in prices as importing them gets more expensive. So there should be small delay between now and when prices start to hike up.
He covers this a bit in the video. Short answer is that each company is going to handle it differently, and it depends a lot on circumstance.
The tariff is paid when a product is shipped into the US from China. Thus, if a company has a massive stockpile of product in a warehouse, they aren't going to suddenly get a tariff slapped on them. Any new products imported will be. Thus, an "ideal" way would be if a company could stockpile as much as they could before the tariff date, and then sell that larger stock for as long as they can. Once they start running out and need to order more product, then that new shipment would get hit by the tariff, and that's when it's likely to have the price increased. This is where the circumstance part comes in, because not every company has a massive warehouse they could do this in. However, there's nothing stopping a company from putting that tariff increase on products before they're truly "impacted".
Oooh. Thanks for the answers, yall. Hope things work out for me because I was planning on building a PC but would have to wait till next year.
I would imagine they'd just plan to have everything assembled in Taiwan instead. That's where the chips are manufactured and the assembly costs aren't going to be a whole lot different between Taiwan and China. With any planning at all, this is easily bypassed.
I am looking at this from this angle : PC users from many countries outside US like ours (Turkey) buys pc parts etc. from international stores like amazon.com from time to time because it comes actually cheaper to buy and pay local tariffs then buy the parts locally (which are also imported directly from asia -as most manufacturers are in asia-) Now if the US prices rise like %15-20 it would make no sense whatsoever for people outside US to import from US as it would probably be the same if not more expensive then local prices. Also when people buy from local retailers we get extended warranty and to be able to pay in installments.
In the end of it, this tariffs will not only hurt us customers but it will also hurt sellers from US as we would have no incentive to buy from there anymore. Thank you Trump.
In the end of it, this tariffs will not only hurt us customers but it will also hurt sellers from US as we would have no incentive to buy from there anymore. Thank you Trump.
Or they will just eat the cost since they make so much on software anyway, it's better to have a larger install base.
Why would it such in Canada? Unless Canada levied tariffs recently?
I have a bad feeling US prices aren't going to increase much, it's going to be the rest of the world that ultimately pays for this. I hope it doesn't come to that but it's so easy. For example increase MSRP in US so that a $799 card becomes $879 card and follow that up with £799 to £879 price increase in UK for example. Convenient..
Going by the video. They all arrive at US ports which is then taxed there. So it looks NA is affected, not just the US.
This is explained in the video. Most components destined for Canada still come in at US ports. It'll take a while for new routes to be planned and they'll probably still cost a bit more than previous shipping.
It's going to be interesting to see if there will be changes tot he current supply chain/shipping structure.
Already there are some manufacturers shifting production to different countries for certain items. I am sure we will see some changes in supply chain for components as well as shipping.
It will certainly be a mess for a few years.
I guess Canada has some western ports too.
They might reroute the goods there to avoid tariffs.
I wonder if this will have some impact on the used parts market as well. More demand for 2nd hand everything.
Good thing I bought all the parts I needed for my new gaming pc last week. Still wasn't cheap but I can only imagine it costing me another $1000 if I had waited.
If they have to limit manufacturing locations, that could easily cause shortages.
That would work for buyers in Canada and Mexico, but once it hits USA it'd still get hit by the tariff. The country of manufacture is what matters, not what ship/truck delivers it.
This is one of the difficulties of the current situation. Starting up a manufacturing process for assembly isn't without costs, and taking on those additional costs is a risk for companies should the tariffs be reduced or eliminated. The lack of consistency and forewarning on decisions relating to trade will cause companies to play conservatively in their decision making process, and the most risk averse action is likely to simply pass the costs of the tariffs on to consumers.
Consoles are typically made in places like china or taiwan. Theres no way its not going to affect console prices.
It seems like more of an assembly issue, though. I agree it puts them in an awful position with their current gen, but if they feel this stupidity is going to last, 25 percent is a heck of an incentive to scout out a new assembly location for next-gen.
Imagine if everyone decides to do the same thing to avoid tariffs. There isn't enough land in Taiwan to have enough factories for everyone to have their manufacturing done there to avoid the US/Chinese tariff war.
PC gamers can't catch a break. First, the mining craze drives GPU prices into the stratosphere, then RAM prices jump up. Now that the GPU prices have stabilized (barring Nvidia's hilariously overpriced 2000 series), these tariffs kick in!
And that's not to mention Intel CPU prices going up because of 14mm shortages.
Microsoft and Sony picked GREAT times to release their mid-gen consoles. It's going to be much more economically sensible to just pick up an Xbox One X or PS4 Pro instead of building a PC. The mid-gen refreshes will increasingly become "good enough" for many people because of cost/performance ratios.
Though, unfortunately, I can also see this affecting consoles as well. Nobody wins! Thanks Trump.
Even with the grey market? Like buying from resellers?
And that's not to mention Intel CPU prices going up because of 14mm shortages.
Microsoft and Sony picked GREAT times to release their mid-gen consoles. It's going to be much more economically sensible to just pick up an Xbox One X or PS4 Pro instead of building a PC. The mid-gen refreshes will increasingly become "good enough" for many people because of cost/performance ratios.
Though, unfortunately, I can also see this affecting consoles as well. Nobody wins! Thanks Trump.
Even with the grey market? Like buying from resellers?
Had we ever have tariffs protecting and making a positive change in our history? I'm probably too young to remember any other tariffs, so I don't know if actually having any sort of tariffs is a positive thing.
RE: consoles: if next-gen consoles are affected, current-gen consoles will too. Likewise, if current-gen isn't affected, neither will next-gen. I'll have to double check whether consoles are included, since the tariffs exclude laptops. I think they might be excluded, as they're a complete product.
As previously pointed out, the tariffs only apply to stock that reaches US ports from today, so any stock that's already on US soil isn't affected. If consoles are affected, I would expect price rises next month and/or February.
As previously pointed out, the tariffs only apply to stock that reaches US ports from today, so any stock that's already on US soil isn't affected. If consoles are affected, I would expect price rises next month and/or February.
Thanks. Not trying to be a jerk when I asked but when people OP an article they clip a summary. If people want to post YT videos over ~5 minutes, and they watched, they should summarize the "meat" before they expect other posters to spend time on it.
Tariffs only really help young emerging economies to help get their homegrown production going. It's been known as a bad policy for developed nations in a global market for well over 100 years.
Trump is so conservative he literally believes that the US is the US of the 1800's.
If by reseller you mean an actual business with a storefront, then they're gonna be paying the tariff. If you mean someone who took it across the border as a personal belonging or something and didn't claim it during customs, then sure they might be able to dodge it, but that's smuggling if they did it for the express purpose of selling it in the USA.