(Credit: Joseph Maldonado)
UPDATE 4/10: The Consumer Technology Association (CTA) now says GPUs will not be exempt from Trump's 145% "reciprocal tariffs." The organization expects GPUs to be tariffed as part of tariff code 8473.3011 or 8473.30.1180 for “Printed circuit assemblies for rendering images onto computer screens (‘graphics processing modules’).”
Original Story:
A federal order confirms that various processors—including memory chips and GPUs—are spared from Trump's "reciprocal tariffs." But don’t be surprised if your graphics card still gets a price hike.
The order outlining Trump's reciprocal tariffs, published Monday, targets numerous countries in the electronics supply chain, including China, Taiwan, Vietnam, and India. Tariffs threaten to raise prices for many consumer electronics since most are made in the tariffed countries. But for now, Trump has not included semiconductors in the policy.
The official order includes an annex that lists the 15 related semiconductor imports that are exempt. They include "Electronic integrated circuits: processors and controllers," "Electronic integrated circuits: memories," and "Parts of electronic integrated circuits and micro assemblies."
(Credit: Federal Register)Missing from the exemptions are tariff codes 8473.30.1180 and 84733011, which cover graphics cards. So, at first glance, it looks like Trump’s order ensnares GPUs, a crucial component for PC gaming. But the Consumer Technology Association (CTA)—the major lobbying group for the electronics industry—says Trump’s order exempts GPUs in a different way.
The order excludes imports that were previously targeted in Trump’s aluminum-focused tariffs, which went into effect last month. The 25% tariff on aluminum imports already covers GPUs and PC cases since US Customs considers them "aluminum derivative" products.
In other words, Trump’s latest order doesn’t add new tariffs for GPUs—it merely leaves them subject to the aluminum-focused tariffs already in place, which have also been squeezing PC vendors. Any GPUs imported from the country also fall under Trump's existing 20% tariff on Chinese goods from March.
Despite the exemption, the CTA worries that it will only be a matter of time before semiconductors and other integrated circuit products also face tariffs. Last week, Trump said his chip-focused tariffs are slated to arrive “very soon” as their own separate category.
The other issue is that Trump has threatened to raise his tariffs on China to 104% by Wednesday, which could drastically increase prices on all kinds of products imported from the country. His reciprocal tariffs will also impose a 32% duty on imports from Taiwan — another major market for electronics manufacturing.
IT analyst Patrick Moorhead notes that Apple and Nvidia heavily rely on manufacturing in China and Taiwan. Trump's reciprocal order also doesn't exempt laptops, phones, or even enterprise servers—Nvidia's key business amid the AI boom. "Nvidia's full systems and trays are primarily made in Taiwan and get hit with the full weight of tariffs," Moorhead tweeted.
So far, Nvidia has declined to comment on the reciprocal tariffs. But last month, the company’s CEO talked about Nvidia’s priority to bring more manufacturing to the US.
Vendors may also try to develop more electronics production in Mexico, a market spared from the reciprocal tariffs. However, analysts expect it to take several years for companies to migrate such manufacturing to North America.
Meanwhile, AMD tells PCMag: “We are closely monitoring the developments following [last week’s] tariff announcement. Although semiconductors are exempt from the reciprocal tariffs, we are assessing the details and any impacts on our broader customer and partner ecosystem. We will provide updates, as needed, as we learn more.”