Heres How Trumps New Reciprocal Tariffs Could Potentially Destroy Consumer PC Markets; Prices Might Rise By Up To 50%
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Well, President Trump's new tariffs are now officially in, and the numbers aren't looking good for consumers at all since it is now expected that hardware prices could rise massively.President Trump's Newest "Reciprocal Tariffs" Are Expected To Target IT Manufacturers The Most Out of All OthersWe knew that with Trump 2.0, there would be consequences for the trade world, but with the reciprocal tariffs announced yesterday, the supply chain could potentially witness devastating impacts. The administration claims it is an "eye-for-eye" move, but based on what experts are claiming, the tariff percentages are higher than expected. It won't be wrong to say that nations where the consumer hardware supply chain lies, such as China, Vietnam, Indonesia, and many more, will now find exporting to the US much more costly, and the end user will ultimately pay for this.With China effectively witnessing a 54 percent tariff, Morgan Stanley claims that all significant IT products, including smartphones, PCs, wearables, and peripherals, are expected to see a massive increase in taxation. The decision lies with the manufacturer about whether to prioritize raising prices or taking a hit on margins. In light of this, it is claimed that prices could rise by up to 50% if companies decide to burden consumers, which means that all consumer PC hardware prices could soar massively.Judging by this estimate alone, we have compiled a list of PC hardware that is popular among users nowadays, and based on their MSRPs alone, we have estimated the post-tariff pricing. Here's how pricing could evolve under the new Trump tariffs:NVIDIA GeForce RTX 5090 ($1,999 MSRP)25% Increase: $2,498.7550% Increase: $2,998.50NVIDIA GeForce RTX 5080 ($999 MSRP)25% Increase: $1,248.7550% Increase: $1,498.50AMD Ryzen 7 9800X3D ($500 MSRP)25% Increase: $62550% Increase: $750Intel Core Ultra 9 285K ($600 MSRP)25% Increase: $75050% Increase: $900It is important to note that the above pricing is deduced from factoring in the MSRPs, and it doesn't take into account real-time price tags, which are far larger for products like the GeForce RTX 5090. It is safe to say that the overall price increase should be estimated to be around 25% to 50%, and this is given the fact that manufacturers decided to put pressure on the end consumer from Trump tariffs, which will most likely be the case.Another devastating factor with Trump's new policies is that hardware manufacturers cannot benefit from the "China+1" strategy anymore, given that the tariffs are also imposed on nations like Vietnam, Thailand, India, and Taiwan, which are deemed to be a viable alternative to China. So, a workaround to these tariffs isn't possible at all, and given how big the US markets are, manufacturers will be forced to make a tough decision.Morgan Stanley says companies like Apple, Cricut, Dell, Garmin, GoPro, HP, Logitech, and Sonos are expected to be influenced the most by these tariffs, and PC hardware manufacturers, such as AIBs like MSI, Acer, Gigabyte, will also face much higher taxes the next they export products to the US. The decision certainly isn't in consumers' favor, and will create devastating impact for those looking to get their hands on new hardware.Deal of the Day
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