Manufacturers speed up RTX 5090 production to avoid tariffs

PC manufacturers are currently in a frenzy as they race against the impending tariff truce deadline between China and the U.S. set for July 9. The goal is to expedite shipments and ensure ample stock before the uncertain tariffs potentially affect the tech industry. MSI chairman Joseph Hsu revealed that the company’s inventory flies off the shelves immediately upon arrival, prompting them to swiftly ship all available units to meet customer demands. Similarly, Gigabyte’s chairman, Dandy Yeh, noted during their annual general meeting that the company is facing the same urgency to fulfill rush orders and circumvent tariff ambiguities.

The tariff saga commenced when President Trump announced tariffs on nearly all American trade partners in early April, scheduled for full implementation on April 9. However, an exception was made for China, which received a steep 145% tariff after escalating tensions. This maneuver spurred negotiation talks between various countries and the U.S. in a bid to secure deals and evade high taxation on their goods. Despite these efforts, the looming deadline casts a shadow of doubt over the outcome, prompting companies like MSI and Gigabyte to proactively stockpile inventory.

Throughout his term, President Trump has repeatedly introduced import taxes, only to halt them moments before their enforcement. This uncertainty, especially within the tech sector, has left businesses reeling. Legal battles ensued following the declaration of Trump’s tariffs as unlawful by the U.S. Trade Court, although the tariffs remain active amid White House appeals. Nvidia CEO Jensen Huang lauded Trump’s actions as visionary, further underlining the industry’s apprehensive stance.

With the July 9 deadline fast approaching and no concrete trade agreements in sight, companies are at a crossroads. The lack of official announcements regarding trade deals has prompted a rush to import goods, mirroring Apple’s preemptive actions before the initial tariff deadline in April. Despite Nvidia’s recent launch of the RTX 50-series GPUs and increased manufacturing efforts, MSI and Gigabyte find themselves in a race against time to secure their stockpile.

Hopes are pinned on timely negotiations or deadline extensions to avert the potential fallout of elevated tariffs. The specter of impending trade implications reminiscent of the Smoot-Hawley Tariff Act of 1930 looms large, with fears of a global economic downturn should these measures materialize. As companies brace for the unknown, the industry holds its breath in anticipation of significant developments before the critical deadline. The uncertainty surrounding the tariffs remains a primary concern, urging businesses to make strategic decisions to navigate these turbulent times in the tech sector.