China and the United States are waging a trade war which, under Biden, was rather quiet… But now that Trump is in charge, it’s a different kettle of fish. He has no qualms about imposing tariffs on all products from countries with a trade deficit. So let’s not talk about China. The problem is that certain components were still benefiting from Section 301 exemptions (defined by the 1974 US Trade Act), which may not be renewed this year. This would push up the price of graphics cards by an estimated 35-60%!
Graphics cards: towards a 60% rise in June?
GPU prices are currently high, but things could well get worse. Via Moore’s Law is Dead, we learn that a certain large partner is selling its RTX 5080s for $1400 to wholesalers. What’s more, wholesalers are buying because prices could rise again soon, due to the famous end of exemptions (scheduled for 31 May 2025) linked to component prices. The AIB in question expects prices to remain at least 35% higher. But with the end of the exemptions, cards could go up by as much as 60%.
Of course, it remains to be seen whether this exemption will be extended or not, but it would appear that this is not the case for the time being. Unfortunately, this price increase could also be felt in Europe, for logistical reasons on the one hand, and because prices are often set according to the US market on the other. Secondly, global prices could be adjusted upwards to compensate for losses on the US market.
Finally, all this could have serious consequences for American companies such as NVIDIA, AMD and Intel. Yes, although these companies are based in the United States, the bulk of their production takes place abroad. If the price rises significantly, the whole market will slow down, PCs will sell less, graphics card renewals will be much more staggered and these key brands are likely to suffer… Just like their share prices.
We’ll keep you posted.