NVIDIA and AMD are racing against the clock to deliver their next-generation GPUs to the U.S. before a significant tariff increase potentially disrupts the market. Reports suggest both companies have implemented extraordinary measures to ramp up production and shipping, aiming to avoid price hikes tied to proposed tariffs under Trump’s policies.

The tariffs, set to take effect after January 20, could impose a 10% tax on imports from non-China sources and up to 60% on those from China. This development is especially concerning since a majority of gaming GPUs are manufactured in China, potentially leading to a price surge of up to 40%. For instance, NVIDIA’s flagship GeForce RTX 5090, estimated at $1,799, might exceed $2,500 post-tariff.

“This is a strategic move to prevent prices from skyrocketing,” insiders revealed, highlighting NVIDIA and AMD’s push to stockpile GPUs in U.S. warehouses. Production efforts reportedly began in early December, a departure from standard practices, given that next-gen GPUs typically have constrained supply during initial rollout phases.

Industry observers note that the proposed tariffs are already influencing broader sectors. Companies like Microsoft, Dell, and HP have also expedited production to mitigate potential impacts. Early shipments may provide a short-term buffer, but experts warn that once initial inventory runs out, consumers could face steep price increases.

Adding to the uncertainty, the policy’s implementation timeline has created a rush across the supply chain. This disruption could inadvertently fuel demand for second-hand GPUs, with consumers seeking more affordable alternatives.

While NVIDIA and AMD have not officially announced pricing for their upcoming GPUs, the industry braces for significant changes. As the January 20 deadline approaches, all eyes remain on how these tariffs will shape the future of consumer electronics in the U.S.

WCCFTECH