Friday, April 4th 2025
Trump Tariffs to Hike PC Costs at Least 20%, System Integrators Take the Biggest Blow
While semiconductors are exempt (for now at least) from Trump's tariffs, other components going into our PCs are not. According to Tom's Hardware, which spoke to multiple system integrators, tariffs are about to hike PC costs by at least 20%, with system integrators hurt the most. The tariff package imposes a 54% rate on Chinese goods, 34% on top of earlier tariffs, and significant duties on Taiwan, South Korea, and Vietnam products. These countries supply essential PC components such as SSDs, RAM, cases, and graphics cards. Wallace Santos, CEO of Maingear, highlighted the immediate effects on production: "Tariffs have a direct impact on our cost structure… which we have to pass down to our customers." He further explained that some suppliers have halted production in China, leading to scarcity and escalating costs. Santos estimates that prices for his PCs will rise "20 to 25% as a result of the tariffs."
Other company leaders express concern over the limited alternatives available. Kelt Reeves, CEO of Falcon Northwest, stated, "Sadly the overwhelming majority of PC component manufacturing is not done in the US and never has been. There's no US alternative supplier for most PC parts." Reeves added that even US-based system integrators are "facing skyrocketing costs" due to the tariffs, which are set to worsen an already challenging market situation caused by ongoing GPU shortages. Jon Bach, CEO of Puget Systems, shared his perspective in a recent blog post, noting that his company might absorb some costs to minimize consumer price increases. However, even before the latest tariff updates, Bach predicted a price rise of "20 to 45 percent by June." Critics of the tariffs warn of broader economic issues. Gary Shapiro, CEO of the Consumer Technology Association, condemned the policy as "massive tax hikes on Americans that will drive inflation, kill jobs on Main Street, and may cause a recession for the US economy." With these tariffs taking effect, the PC industry faces a period of adjustment marked by increased costs and significant supply chain challenges.
Source:
Tom's Hardware
Other company leaders express concern over the limited alternatives available. Kelt Reeves, CEO of Falcon Northwest, stated, "Sadly the overwhelming majority of PC component manufacturing is not done in the US and never has been. There's no US alternative supplier for most PC parts." Reeves added that even US-based system integrators are "facing skyrocketing costs" due to the tariffs, which are set to worsen an already challenging market situation caused by ongoing GPU shortages. Jon Bach, CEO of Puget Systems, shared his perspective in a recent blog post, noting that his company might absorb some costs to minimize consumer price increases. However, even before the latest tariff updates, Bach predicted a price rise of "20 to 45 percent by June." Critics of the tariffs warn of broader economic issues. Gary Shapiro, CEO of the Consumer Technology Association, condemned the policy as "massive tax hikes on Americans that will drive inflation, kill jobs on Main Street, and may cause a recession for the US economy." With these tariffs taking effect, the PC industry faces a period of adjustment marked by increased costs and significant supply chain challenges.
24 Comments on Trump Tariffs to Hike PC Costs at Least 20%, System Integrators Take the Biggest Blow
The Germans, French & British are just going to redirect their car industry to the army.
The rest will find new trade partners.
The US will enjoy a new Great Depression.
Inb4 a UK-Canada-EU superpower. Isolationism was cool in 1920.
South America looks able and willing, too, for trade expansion.
Any minute now!
But, we'll see. Time will tell. There is one certainty, trust is easy to lose and hard to gain, and trust is gone. That all on its own represents a massive bill on the US itself.
If anything that comparison of % import/export tells us that the US already had domestic industry that is feeding itself. Why would that increase? The US imports things they simply don't make in sufficient quality themselves, like for example cars or high quality steel. The simple fact is, EU companies build better ones and so does Asia. Semiconductor technology: same story. We could go on... That brain drain isn't going to reverse itself because the US stops trading :D
Here in EU, L (large 63-73g) sized eggs cost us 2,5Eur per 10 eggs. So it's 0,25 Eur per large egg.
Medium eggs (53-63g) cost about 2 Eur per 10 eggs.
Of course prices differ by how chicken are held. Like free chicken, or caged chicken.
Though, as far as i have seen, there are no more caged chicken eggs here.
3USD per dozen of eggs is 0,25 USD per egg. So pretty much same price as in EU, just no info on what size and the kind of chicken.
Prices definitely back to normal. Who needs chickens to lay them when you can get pink magical bunnies to do it.
Shame so many are in too deep. And retort with echo chamber something something. Hilarious. It brings back memories too, of something that happened in Europe some 80 years ago. A near religious belief in an alternative reality caused a whole population to go wild. The rhetoric looks similar 'we suffered badly from the last war'... Except now its not even based on anything real.
Anyone that understands what is going on right now knows it isn't about isolationism. And even though the President talks about bringing production back to the USA he knows it can't be done probably even during his administration.
This is about forcing the hands of those that haven't treated the USA as an equal and tariff all our products. It is about forcing them to negotiate so that the USA can participate in fair trade and by bringing down the prices of USA good in other countries by reducing tariffs it can lead to more product being traded to those countries. As with all commerce you have supply and demand. If the USA products have large tariffs imposed on them it means they are more expensive. Lower those prices and demand increases.
This is about forcing negotiation to force the other countries to reduce their tariffs on the USA so that prices can decrease so that more product can be exported and sold with proper margins and profit.
It is all a tactic. Many countries are already talking about negotiating. If enough of them negotiate it forces the hands of the holdouts because they will be on the outside looking in. The holdouts will also get the worse deals, while the first to the table will get the best.
I wish most schools still required courses on economics. It seems most of the people don't understand its concepts very well.
The President is runs his mouth way to often with to many things. People need to look more often at his real results and not the platter of garbage the media puts out. Do your own real research. Neither side of the media provides accurate news. In this day of news as entertainment you have to verify the news on your own most times through various outlets.
If you want to sell something you need to have something countries want to buy. They want to buy it either because;
- they can't make it themselves
- making it is too expensive
Now reflect on what you just said, and how this supposed tactic plays out. The world's bigger than the US and there are lots of emerging markets. You can try to magically reason around reality with one liners like 'you don't know what you're talking about' and 'echo chamber' and 'you'll see...! Any minute now!' but that's really not an argument is it.
If everyone is doing it i guess it's ok now. The US is not a trusted partner (never was, but their true colours are a bit more obvious now) and that will lead to the fall of the empire, and it's about time. As a European i love Trump.
Trump's numbers are completely made up. Short-term tactics suggested by chatbots (which the chatbots themselves branded as naive).
It's funny how his naive advocates like to brag about their deeper 'knowledge.'
Candles always burn wildly before they go out. We have led candles now. Time to move on.
I seem to remember Trump bragging about making the best deals including the USMCA he signed. His deals are the best, then suddenly they are the worst and he had nothing to do with them. His guys are the best and then they are suddenly the worst, he doesn't know him.
FYI America already had free trade deals in place to reduce tariffs, here is a small sample:
USMCA:
Automobiles & Auto Parts - 0% Tariff if 75% of parts originate from North America (up from 62.5% under NAFTA). Mexico eliminates 10% tariff on U.S. auto exports.
Dairy - eliminates 200-300% tariffs on U.S. dairy products, allowing up to 3.6% of its dairy market to U.S. suppliers.
Poultry & Eggs - U.S. can export 57,000 metric tons of chicken to Canada tariff-free (rising to 62,000 by 2026).
Egg exports - 10 million dozen tariff-free, increasing by 1% annually.
Wheat - Canada removes higher-grading advantage for domestic wheat over U.S. wheat.
0% tariffs on digital products (e-books, music, videos, cloud services). This one is massive given the number of services US provides worldwide from Google, Apple, Adobe, etc.
KORUS (United States-Korea Free Trade Agreement)
Automobiles - South Korea eliminated 8% tariff on U.S. car imports. U.S. maintains 2.5% tariff on Korean car imports until 2041.
Beef - Tariff phased down from 40% (2012) to 16% (2023), with complete elimination by 2026.
Pork - Most U.S. pork cuts 0% tariff since 2016.
Wine - South Korea removed 15% tariff on U.S. wine.
Cheese & Dairy - 36% tariff phased out over 15 years.
Medical Devices & Pharmaceuticals - 0% tariff on U.S. medical equipment and drugs.
CAFTA-DR (Central America-Dominican Republic Free Trade Agreement)
Apparel & Textiles - 0% tariffs on U.S. yarns & fabrics used in Central American-made apparel.
Wheat, Corn, Rice - Tariffs phased out completely by 2020.
Pork - 15% tariff eliminated by 2020.
Dairy - 40% tariffs on cheese and milk phased out over 20 years.
Wine & Spirits - 15-30% tariffs eliminated immediately.
Electrical machinery, equipment, and medical devices now tariff-free.
- WTO's CAA stipulates that aircraft and aircraft parts be tariff and duty free
Automobiles & Auto Parts – Duty-free if they meet regional content rules (75% of components from North America).
Please delineate to the audience the specifics of what products Trump wants countries to lower tariffs on. I'll wait.
FYI Trade deficit does not equal bad.
guess what is going to be taxed in the foreign countries? sure, you can be naive and gulible and believe what they are telling you. Or you can think by yourself.
Negotiation with countries would have been a reasonable if you take 1 country, impose a huge tarrif, and then negotiate with say country, who do not want to see other countries taking over their share in the US consumption.
Now, imagine that you raise price for ALL countries. This is not a concern anymore.
Now, what is being made is basically a ~20% GST/VAT on almost all goods (excluding the ones fully made from bottom to end in the US - which is not important), paid by.... the middle/lower class US citizens.
All of that to be able to cut tax for the rich people.
And you voted from him. Congrats. Bet you ll change your vote in 2 years!
2sd kisscool effect: other countries will raise tax from the US only, making US export tank (even if its only 10%, 10% is still a lot of money).
The US government and charitable non profits from the US provide a large majority of the Aid that is seen across the world.
Want to know why other countries can spend so much on social programs? Because the USA pays and protects their country so they don't spend that money themselves.
If the USA fell there is no country to take its place. It would be anarchy. The countries of the world depend on the money from the USA and the military. Without the USA South Korea would be gone tomorrow, Ukraine and other countries gone tomorrow, and China would at least take Taiwan.
All the while places like the UK are trying to make sure their are no pointy objects for people because they have allowed people with bad intentions into their country and think that if they remove pointy objects those people will be detoured from doing bad things. That will never happen.
And then you teach us about unfair trade, at least have some shame about when you're lying as blatantly as this :shadedshu:
Seems that the orange mob boss does not understand the point.
Yes it costs, but on the other hand, you can sell your weapons and services to half of the planet, and control them in a way. So at the end of the day, it is money well spent.
Thats being changing (thanks to the aforementionned orange mob boss), and you ll understand why it was so important.
armedforces.eu/compare/country_European_Union_EU_vs_USA