NVIDIA and AMD Expedite Next-Gen GPU Release to Sidestep Trump Tariffs; GeForce RTX 5090 Projected Price Surpassing $2,500

In a strategic response to impending tariffs imposed by the Trump administration, NVIDIA and AMD have commenced the early shipment of their upcoming generation graphics processing units (GPUs) to warehouses in the United States and China. This move appears to be driven by a pressing need to mitigate financial impacts on their supply chains.

Urgent Measures by NVIDIA & AMD to Counteract Tariff Impacts on Next-Gen GPUs

According to recent reports from Ctee, both GPU manufacturers are pushing AIB (Add-In Board) partners to expedite the production and distribution of their next-gen graphics cards. This initiative aims to ensure that these products enter the U.S. market before the inauguration on January 20, 2024, effectively sidestepping predicted tariffs that could result in substantial price increases.

The scale of this operation marks a notable shift in typical manufacturing schedules, particularly considering the limited supply that is characteristic during new GPU launches. To safeguard their interests against potential supply chain disruptions and to keep production confidential, AMD and NVIDIA reportedly began ramping up GPU manufacturing as early as December. This tactical approach reflects a dual objective: managing immediate inventory levels while anticipating substantial profit margins before retail prices are affected by tariffs.

For perspective, the proposed tariffs include a 10% tax on certain imports and a staggering 60% on goods coming from China. Considering that a significant portion of consumer gaming GPUs are manufactured in China, analysts project that prices could surge by approximately 40% or more, dependent on manufacturers’ pricing strategies. This scenario is not exclusive to NVIDIA and AMD; prominent companies such as Microsoft, Dell, and HP are also accelerating production to adapt to the shifting market landscape.

Projecting hypothetical Manufacturer’s Suggested Retail Prices (MSRPs), the anticipated cost for NVIDIA’s flagship GeForce RTX 5090 could be around $1,799, while AMD’s Radeon RX 9070 XT might hover near $1,000. If a 40% tariff is enforced, consumers could see prices reach approximately $2,500 for NVIDIA’s top-tier model and up to $1,400 for AMD’s offering. Such significant price hikes are poised to disrupt the consumer GPU market considerably.

Although the embargo on these tariffs has not yet been officially enacted, the expected increases in GPU pricing remain a concern for consumers and manufacturers alike. Adapting swiftly to these uncertainties will be crucial as manufacturers scramble to maintain their competitive edge amid a rapidly changing economic landscape.

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