Since becoming President of the United States, Trump has been waving the threat of tariffs whenever he wants to put pressure on any nation. However, if this sounds like a bluff to some, these “Trump Tariffs” are already in place in some cases, and this is creating movement on the side of motherboard manufacturers. ASRock is reacting by relocating part of its production.
ASRock relocates part of its production following the Trump Tariffs!
For many component manufacturers, these additional tariffs, on top of those already in place, are likely to make life difficult. The aim here is to find out whether it would be more profitable for them to relocate some or all of their production outside China. This is what ASRock is doing, in any case, by studying the terrain of nations not affected by these “Tariffs”.
ASRock is in direct competition with other manufacturers. These include MSI, ASUS and Gigabyte, as well as other local brands. However, relocating part of your production has an impact on production costs, particularly in terms of labor… Will the latter be more expensive? Likewise, a new supply chain has to be set up, and so on.
In the meantime, ASRock is looking into the possibility of increasing its costs, but not by too much… The brand’s products shouldn’t be too expensive compared with its competitors. In addition, by relocating part of its production outside China, the brand hopes to avoid these additional customs charges, which in some cases have already reached 25%, plus a further 10%.
In short, Trump’s policy in this area is not only aimed at bringing money into the state coffers through high customs duties, but also at costing China business.
