Impact of US Tariffs on PC Gaming Industry
President Trump's tariff strategy, aimed at boosting the US economy and combating fentanyl, has directly affected the PC gaming sector. Motherboard and graphics card manufacturer ASRock has announced its plans to relocate some production from China.
The Entertainment Software Association (ESA) anticipates potential harm to the US gaming industry due to tariffs on videogame-related hardware. ASRock has indicated both absorption of costs and price increases to offset the impact.
Other PC gaming hardware companies, including MSI and TSMC, also conduct manufacturing in China. The Commercial Times reports a potential 15% increase in prices for TSMC's 7 nm or smaller processes. Export controls on advanced chips further compound these effects.
The reliance of the component and PC market on Chinese manufacturing is significant. For instance, Seasonic, a supplier for American company Corsair, has its factory in China.
Manufacturers may face price hikes or relocation of production, potentially passing these costs on to American consumers. The suspension and subsequent resumption of package deliveries from China by the USPS adds further uncertainty.
ASRock's plans to shift production and potential price increases indicate tangible effects of the 10% tariffs. The impact of higher tariffs remains to be seen, raising concerns for the PC gaming industry.