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President Trump is threatening to almost double his tariffs on Chinese goods from 54% to 104%, raising the prospect of drastic price increases for PC components.
The president made the threat as the Chinese government plans to institute its own 34% tariffs on all imports from the US in response to Trump’s "reciprocal tariff" plan, which targets China and many other countries in Asia.
The reciprocal tariffs were already set to get into effect on Wednesday. But in a Truth Social post, Trump signaled he’s ready to escalate the fight with Beijing rather than back down.
"If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," Trump wrote.
Meanwhile, "all talks with China concerning their requested meetings with us will be terminated!" he added. As a result, the 104% duty could be in place for a while if the Chinese government refuses to withdraw its own tariffs.
Since taking office, Trump has been increasing the tariff rate on Chinese goods from an initial 10% to 20% in early March while also implementing duties on aluminum imports. The resulting trade policy has led to price increase for graphics cards and other components, including PC cases, since many of these products are made in China.
PC vendors are now scrambling to understand the impact of the reciprocal tariffs, which will hit imports from Vietnam, Taiwan, Malaysia, and Cambodia, among others. But many expect price increases will be inevitable, possibly at around 20%.
Vietnam and Taiwan are trying to negotiate deals to exempt themselves from Trump’s tariffs. In his Truth Social post, Trump added: “Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”