Various hardware manufacturers, including Nvidia, HP and Zotac, are demanding an exemption from the US government for punitive tariffs on imports of hardware from China. Doing so, they are reacting to the increasing supply problems and the high costs that the punitive tariffs bring with them.
Because the Trump administration imposed hefty punitive tariffs of 25 percent on imports from the Asian country in the trade war with China, the cost of electronics and hardware such as graphics cards in the US has risen significantly. In view of the difficult supply situation, companies such as Nvidia, HP and Zotac are now calling on the US government under President Joe Biden to issue an exemption for graphics cards and other electronic goods imported from China.
There are no alternative sources for hardware
The US Trade Representative (USTR) had recently announced that the US could soon set exemptions for certain products that are currently affected by the punitive tariffs on imported goods from China. Nvidia, Zotac and HP have suggested that graphics cards, in particular, should be taken into account in these exemptions.
A Zotac spokesman stated:
” China remains the main […] production base for graphics cards and PCs in the industry. The main reason for this is that the outbound supply chain is mainly in China. […] This makes it very difficult to find a source for the right manufacturers to manufacture our products in the US or a third country outside of China. We now have contract with manufacturers in Taiwan to manufacture, but we need to manage the supply chain by sending all the various parts and components there from China so that the Taiwanese factory can manufacture the products. We couldn’t find alternative sources. “
The USTR said that the re-enactment of the exemption for graphics cards largely depends on the extent to which the exemption could have serious negative consequences for US interests, including smaller businesses, supply chains, and the labor market. A final decision on an exemption from the punitive tariffs has not yet been made.