If you’re uncertain about the implications of the new Trump tariffs for your finances, you’re not alone. Many consumers and PC manufacturers are trying to understand their impact and how to minimize added costs.
Fortunately, some manufacturers are starting to discuss how their expenses are changing and how this will affect you — or if it will at all.
PC manufacturers, much like consumers, purchase processors, GPUs, and other parts for their products. However, while you can monitor the price of an SSD fluctuating on Amazon, you lack a true way to predict its future. PC manufacturers have this insight because they frequently communicate with component suppliers. Typically, though, these discussions remain confidential.
Recently, two PC manufacturers, Framework and Puget Systems, have begun sharing how tariffs will influence the prices of their products and the costs they incur for components, including potential increases or decreases. This information is particularly valuable, especially if you’re unclear about which tariffs impact various PC parts. Even better, they are continuously updating their insights as new information becomes available, especially given the fluctuating expected tariff costs.
Naturally, neither company can predict with certainty what will happen at any given moment; President Trump has unexpectedly adjusted tariffs multiple times in the past few days. At the time of this report, tariffs on imported Chinese goods are at 125 percent, while a “pause” has been implemented on other global tariffs — which still remain at 10 percent — and the “cheap tariff loophole” has also been closed. Moreover, chip tariffs could come into effect on June 1.
A year ago, few people considered where a PC or its components were manufactured. Now, it’s essential to pay attention.
Lessons on tariffs from Framework
Framework, a provider of modular PCs, sources its components from various suppliers across different countries. As a smaller supplier, the tariffs have significantly impacted Framework; they recently began allowing customers to pre-order their newest Framework Laptop 12 in the U.S. and previously paused the sales of some existing laptops due to the ongoing tariffs.
Nirav Patel, Framework’s chief executive and founder, mentioned that the company was established with the expectation that U.S.-China relations would deteriorate and tariffs would be imposed. Consequently, much of Framework’s assembly is carried out in Taiwan.
Here’s how Framework explains the situation: Framework’s laptops, desktops, and mainboards are assembled in Taiwan, which previously faced a 32 percent tariff that has now reduced to 10 percent. While some of its pluggable USB-C modules come from Taiwan, most are produced in China and still incur a 125 percent tariff. Framework acquires Western Digital’s modules from Malaysia (previously: 24 percent tariff, now: 10 percent).
Patel offered an interesting suggestion for customers looking to purchase their tariff-affected storage: “[We] advise that you consider buying it from other sources for your DIY Edition if possible, such as directly through the Western Digital website.”
Another takeaway? Farewell to budget PCs. If low-cost PCs are unable to be sold with sufficient profit margins, manufacturers will stop producing them.
“For our lowest-cost base systems, which we can’t manage to absorb the remaining 10 percent tariff, orders remain on hold for U.S. customers,” Framework stated. “Many of our modules are made in China, which now face increased tariffs. For these items, we are currently maintaining higher prices to offset the tariff costs. We will keep monitoring this situation and adjust pricing if necessary.”
Puget’s forecasts on pricing for PC components
Puget Systems is a smaller, specialized workstation manufacturer that has released detailed updates on how the tariffs affect its costs and retail prices. Puget has also differentiated between goods that face direct tariffs and those subjected to indirect tariffs — for instance, while DRAM may be produced in the United States, the printed circuit board it is attached to could come from China.
According to Puget, the most significant effects will be seen on the pricier components — with one exception. Processors from both AMD and Intel are exempt from tariffs, seemingly because they are officially dispatched from the United States. Some graphics cards are exempt as well.
Conversely, the demand and pricing for Nvidia’s latest GeForce 5090 have already soared, and it’s likely to get worse. “When a new product launches and is in high demand, typically, supply is limited, leading to significant price inflation,” Puget president Jon Bach noted. “The 5090 certainly falls into this category! I can’t recall a product in recent memory that has remained in such short supply for so long after its launch, and the outlook doesn’t seem promising.”
Here’s how Puget anticipates that the tariff hikes will influence the prices of the components it purchases. While the actual percentage costs were linked to the previous per-country tariffs, you can generally treat them as a guide to their price sensitivity.
- Motherboards: On April 1, Puget announced it would absorb any increases in motherboard costs since they originate from various countries.
CPUs: No effect! - SSDs: Puget anticipates a 10 percent increase in prices, but this is due to supply limitations, not tariffs.
- Memory: Prices were already decreasing prior to the tariffs, so the price paid by Puget (and you) might stay the same or even decline slightly.
- GPUs: An enormous uncertainty. GPUs were previously subject to a 20 percent tariff, which might have already been partially included in the pricing. “This is the most troubling news in this update because these components are already expensive, so even a minor percentage rise leads to a significant dollar increase,” Bach noted.
- Network and storage controllers: Puget expects to incur around a 20 percent increase here, but these are likely limited to its workstation or rack products.
- Chassis and power supplies: Puget anticipates a 20 percent price increase, which seems reasonable for enthusiasts as well. “Large-scale chassis manufacturing typically occurs in China, so our costs are directly affected,” Bach mentioned.
- CPU coolers and fans: According to Bach from Puget, prices for these parts are expected to rise by approximately 20 percent. Fortunately, their relative expense is not too high.
It’s challenging to promote, but it may be wise to purchase now. Bach from Puget indicated that the Trump chip tariff is expected to begin on June 1, with possible cost increases ranging from 20 to 45 percent. Thankfully, Puget is utilizing the “pause” in tariffs to import as much inventory as possible to stockpile components in U.S. warehouses before any further tariffs are reinstated.
Framework discusses tariffs
Given that PC manufacturers both assemble and produce, how does the government determine which items are subject to tariffs? Framework provided insight into how its products were influenced. (This might be an overload of information!)
“When products are imported into the U.S., tariffs are applied based on the country of origin and the HTS (Harmonized Tariff Schedule) code assigned to the products,” Patel from Framework explained.
“We send all of our products DDP (Delivered Duty Paid), which means we settle tariffs when goods pass through customs and incorporate the cost into our pricing,” Patel added. “The tariff amount is calculated based on the product’s value upon import, reflecting our costs as the importer rather than the final price we charge the customer. The country of origin is deemed as the last place where ‘substantial transformation’ occurs. For computers, U.S. Customs has distinctly classified substantial transformation as the location where the main circuit board is assembled.”