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source: Medium @ Cici_Technology

The latest round of tariffs announced by former President Donald Trump this week — dubbed “liberation day” tariffs — could dramatically increase the cost of consumer goods across the board.

But according to PC manufacturers and retailers who spoke with Tom’s Hardware, boutique system builders and custom PC vendors may bear the brunt of the financial impact.



While major OEMs like Dell and HP might mitigate some of the damage by shifting production to countries with lower tariffs, smaller U.S.-based brands such as Maingear, iBuyPower, and Falcon Northwest face a tougher challenge. These companies assemble their PCs domestically but rely almost entirely on parts sourced from Asia — many of which will now be subject to steep new import taxes.

The new tariffs may also impact one of the largest computer retailers in Canada.



image source: www.canadacomputers.com/en/

Tariffs Could Push Prices Up 25% or More

“Tariffs directly impact our cost structure… which we have to pass down to our customers,” said Wallace Santos, CEO of Maingear, just before Trump’s latest announcement. He explained that some suppliers have already halted production in China to relocate to less-taxed regions, creating shortages that drive higher prices.

Following Wednesday’s announcement, Santos now expects Maingear’s PCs to increase in price by 20 to 25% due to the tariffs.

The new rates include:

• 54% on China (a 34% increase on top of existing 20% tariffs)
• 32% on Taiwan
• 26% on South Korea
• 46% on Vietnam

These countries are major suppliers of PC components, including SSDs, RAM, cases, and graphics cards — meaning virtually every part of a computer could get more expensive.

Supply Chain Chaos Worsens GPU Shortages

Santos noted that GPU shortages have already worsened as manufacturers scramble to move production out of China. “Some of our GPU suppliers had to stop their Chinese lines to move to Taiwan or Vietnam, causing additional shortages,” he said.

For some of the GPU products, we see a hike in price. 7800XT GPU’s price has increased in the last 18 months:



source: ca.pcpartpicker.com/tr...ideo-card/

But now thatVietnam and Taiwan also face heavy tariffs, suppliers have fewer options to avoid the financial hit. This could lead to even tighter supplies and higher prices across the board.

No Easy Fix for U.S. Builders

Kelt Reeves, CEO of Falcon Northwest, pointed out that the U.S. simply doesn’t produce most PC components domestically. “That means there’s no U.S. alternative supplier for most PC parts, so even for a U.S.-based system integrator like us, it just means skyrocketing costs,” he said.

Reeves added that PCs are already a low-margin business, making it impossible to absorb such steep cost increases. “PCs were already getting more expensive with the GPU shortages and tariffs on Chinese manufacturing,” he said. “These new tariffs are going to make them much more expensive.”

Some Companies Will Try to Absorb Costs — But Not for Long

Jon Bach, CEO of Puget Systems, wrote in a blog post last week that his company would attempt to absorb some of the tariff costs before raising prices for customers. However, his estimates — written before the latest tariff hikes — still projected price increases of 20 to 45% by June.

Industry Leaders Warn of Economic Fallout

Gary Shapiro, CEO of the Consumer Technology Association, didn’t mince words in his criticism of the new tariffs:

“President Trump’s sweeping global and reciprocal tariffs are massive tax hikes on Americans that will drive inflation, kill jobs on Main Street, and may cause a recession for the U.S. economy. These tariffs will raise consumer prices and will force our trade partners to retaliate.”

Shapiro went further, comparing the policy to the infamous Smoot-Hawley tariffs of the 1930s, which worsened the Great Depression. “Americans will become poorer because of these tariffs,” he warned.

Some Retailers Stay Optimistic — For Now

While most in the electronics industry are bracing for turbulence, some, like discount retailer B&H, are taking a more philosophical approach.

“B&H’s overarching and guiding principle is to be patient and not worry,” said Steve Honickman, Senior Business Development Executive, back in March. “We can’t control pricing, but we always will go above & beyond for our customers!”

Whether that optimism holds as prices climb remains to be seen. For now, PC buyers — especially those eyeing custom builds — should prepare to pay significantly more in the coming months.