How would a Trump win affect PC component prices

Posted by SplatoonOrSky@reddit | buildapc | View on Reddit | 29 comments

Do not make this political because that is not the topic. I am genuinely curious on this.

A core part of Trump’s economic policy, if enacted, is tons of tariffs on foreign goods. This would mean increased prices since consumers typically make up that increased cost.

Let’s just focus on GPUs for now since those prices are the most significant. Nvidia relies on TSMC for their chips. While there is an Arizona location it’s to me understanding they still heavily rely on the main Taiwan location for GPU manufacturing. This would mean some sort of importing will be involved even if the final part of GPU assembly takes place in the U.S., meaning tariffs.

Am I missing something here? Would this not mean that, from a value perspective, the best time to make a PC upgrade would be… right now? If tariffs force chips prices to increase further by a significant margin that’s just another stain on the mess that is current GPU pricing.

Sorry to the mods in advance if it gets heated.

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AstarothSquirrel@reddit

In general, Tariffs are only imposed on products and services that are also being produced by the country imposing the tariffs. This is to protect those industries that would be adversely affected by cheap imports. If the US are not making their own components, increasing tariffs would harm those industries that use those imports. Whilst I think everyone has their own opinion on Trump, I don't think he is going to introduce policy that cripples American industries. In fact, considering the rumblings of alienating America from Europe, I could foresee attempts of stronger trade deals with China but these are unlikely to include computer components.

SplatoonOrSky@reddit (OP)

There technically are TSMC and Intel fabs within the states, so that would be justification for tariffs by your line of reasoning.

I’m also being told Trump opposes the CHIPS act though that allows domestic manufacturing to take place though. So I’m a bit split on where this could really go

Yes, if internal supply is able to meet demand, there will be tariffs put in place that will cost the consumer more. Sometimes, there are tariffs placed on things like ingredients but not on the manufactured products. (this was one of the reasons the UK left the EU, the UK was being forced to charge tariffs on imported products that were not being produced in the UK, bananas was a good example of this)

So, yes, you can expect to see prices for imports products to skyrocket to similar prices for "made in the US" products which means that the price is set by intel's shareholders. What an exciting time to be alive.

Errettfitchett03@reddit

We don't know. It's very likely that Trump will support and give more money to intels fabricator contracts and might want nvidia and AMD to build fabs in america. Pc parts could be more expensive short term, but cheaper long-term, it all depends. It's likely not to change much.

SeaworthinessMuch230@reddit

I could be wrong about this but wasn’t one of those company’s actually working or talking about build a fab in America back when he was president. They said it would take a few years to build and start fabrication not sure if that ever got started building or not but I do remember it.

Intel is building fabs, but intel is also having massive stock price dips, and it making bad leadership choices, so I no longer trust that they have what it takes to break semiconductor manufacturing back to America. Trump gave them money, and biden gave them more money. I think we would need more companies to invest in american fabs to get it going.

I knew it was one of those company’s. Yea intel right now is not in great shape with the issues going on with cpus dying, then trying to get into the gpu market not to mention AMD Ryzen architecture taking so much consumer market share. Without there xenon stuff they would really be hurting.

Isn’t there a rumor about Intel and Nvidia joining up.

Kojinka@reddit

I want to hold on to the AM4 platform with the 5800X3D in my 4k rig, but those gains on the 9800X3D! I still can/should hold off on upgrading, but i fear the tariffs will be in full effect with no end in sight by the time I feel my 5800X3D is no longer available to keep up, depending on how everything plays out

SignalButterscotch73@reddit

Everything will go up in price in the US because of his economic policies and the US based tech companies will use that as an excuse to raise prices globally.

He'll encourage Russia to completely anex Ukraine, giving China confidence that it can get away with conquering Tiwan without any interference causing prices to climb even more, and possibly completely ending TSMC as a fab for Nvidia, AMD, Apple etc because of his economic policies are just so amazing.

You can't even call his policies isolationist or protectionist since the economy most damaged by them will be the US. He's a "let the world burn as long as I get rich" politician.

Bobert25467@reddit

Well I saw a leaker claim Nvidia was already shipping the 5000 series GPU into USA to get ahead of possible tariffs if Trump won so odds are prices will go up on some items. I don't think it's all items though because I think he had tariffs on China the first time too and prices didn't go too high. But I could be misremembering.

C_Werner@reddit

NVIDIA will happily raise prices of already-shipped units. It's happened before, it will happen again.

aeo1us@reddit

Correct. They’ll raise prices to establish the new standard. Bringing cards in early is a way for them to pocket the difference.

Redacted_Reason@reddit

Hope you’ve got a GPU you really like already. This is gonna be a bumpy ride

remifasomidore@reddit

He also opposes the CHIPS act, which is not good for domestic production of PC parts.

strawberrycamo@reddit

I know he said this but I have a feeling he’ll repeal it only to do the same thing and slap his name on it

I don't think he'll even repeal it, he just opposed it because his opponents passed it and therefore it is bad.

lord_uroko@reddit

Yea it might be like biden and insullin. Trump made a price cap so biden removed it because trumps name was on it and then just implemented his own. Could be same thing happen for chips act

exactly. Truthfully it seems like something he would support based on his views on china if it weren’t for his opponents passing it first

It will probably have no impact at all. It is unlikely he will impose tariffs on components due to there not being competitive manufactures in america. Taiwan semiconductor really has a monopoly on the market and they get to decide prices. As the nake siggests they exist in taiwan and our election will have minimal to no impact on them.

SlowFatHusky@reddit

Tariffs are a big stick Trump is willing to use in place of the military. It can be effective at getting other countries or companies to negotiate or stop doing something. John Deere and Stallantis are reportedly thinking twice before moving production to Mexico. China has a poor economy to deal with and not exacerbate. Not sure what he can do to Russia economically, but Ukraine is as easy as stopping support.

The brief port strike on the east and southern coasts has been suspended until January 2025 (temporary contract in place). That has the potential to screw up prices too (probably not as much as a west coast strike).

Naerven@reddit

Essentially speaking if he gets his way and enacts a 30% tariff then the buyer will have to pay 30% more. Again this is an if sort of situation.

whomad1215@reddit

tariffs increase the cost of anything imported

all pc parts are imported

China could also invade Taiwan, who knows what would happen at that point if China controls semiconductor production

peppers_@reddit

I'd be pissed if CHIPS gets removed. I was in the semiconductor industry, supply chain specifically, and it was like 'Yes, this is some best practices shit to have more suppliers, especially domestic.'

10001110101balls@reddit

If China invades Taiwan, they won't suddenly control semiconductor production. Even if TSMC employees all continue showing up to work, there's not much they can do without access to the global supply chain. Semiconductor production in general would be extremely disrupted, and would take a decade or more to recover.