In a first tariff-induced hit against the PC gaming sector, ASRock is talking about increasing costs and moving its graphics card manufacturing away from China
In a first tariff-induced hit against the PC gaming sector, ASRock is talking about increasing costs and moving its graphics card manufacturing away from China
wait they are going to move manufacturing out of china? isn't that what the tariffs were supposed to do? shit
They were supposed to force those manufacturing plants to go to USA, but as the article shows it is not working:
[AsRock] "As for the 10% tariff applied to other products like GPU cards, we need some time to transfer the manufacturing to other countries." [emphasis on the plural]
We already saw signs of this late last year, when PC Partner decided to relocate its headquarters from China to Singapore
And they likely won't move into USA territory because USA might create some tax against the governments they import raw materials from, labour costs are high, and all that talk about expelling illegal immigrants will make labour costs even higher (lower labour supply = higher prices).
The tarriffs were put in place to get the other countries (Canada, Mexico, and China) to tighten up their border security for illegal immigrants and illegal drug trafficking, particularly fentanyl.
This is the officially documented reason for the tarriffs.
If tariffs work, then fuck yeah. I don't think they will in the long run, but if we end up winning the lottery I'm not going to get upset because I didn't like the numbers we picked
It's also super not worth all of the other shit we have to put up with, but let's take what wins we can
Edit: of course they aren't moving manufacturing to the US, so I guess this hurts China at our own expense. I guess it's only a win for whatever country they move manufacturing to
No they arent lmao
Arent the tarriffs on a 30 day pause though? With China already in talks to negotiate? If a deal is made and the tarriffs are dropped, are the price changes not going to go into effect?
My guess is no. Any excuse to raise prices will always be applauded by shareholders.
The tariffs could be cancelled out right and prices would still rise due to market insecurity or a similar buzzword. Tariffs are objectively bad in almost every situation and this was always going to hurt everyone, corpos are also objectively bad and always going to hurt everyone.
I agree that the price increases were already coming and tarriffs provided an easy scapegoat to blame it on. If the tarriffs never came, the prices still would have gone up but they just wouldn't have publicly announced it.
If tarrifs are objectively bad, why did China enact tarriffs in retaliation? Why would they damage their own economy to do basically nothing to the US? The Chinese economy is way more dependant on trade than the US economy is.
The 30 day pause was for Canada and Mexico. The Chiba tariffs are already implemented.
I had read from AP that the President announced he is scheduled to or is scheduling to meet with Xi Jing Ping for negotiations. Kinda funny that China decided to tarriff US goods they import though. I don't see what that even accomplishes for them since their economy is way more reliant on good international trade than the United States. Even as a bargaining chip, its a pretty weak one.
Either way, I think that these price increases were coming anyway, and tarriffs are an easy scapegoat to blame it on that takes the heat off the company.
I think higher prices are only applauded when they also raise the profit margins. If someone figures out how to circumvent the tarriffs while staying competitive, everyone else is screwed.
Price increases always increase profits. You think they are only going to increase the price by exactly how much the tarriffs or other import dues increase their cost? Of course not. They will absolutely increase their profit margin with the price increase.
Only for Mexico and Canada after they agreed to do what they were already planning to do.
Who?
Not trying to be sassy.
asrock is a pc parts manufacturer. used to see them a lot but in recent years not so much. I like their motherboards.
They're still one of the most prominent companies if you're shopping for a mainboard or graphics card. They even have Intel GPUs in their lineup.
They're pretty damn big now. My MB is Asrock, it's one of the best for the AM5 generation. Tons of users are running their boards with the 9800x3d.
A few years ago (when Intel's 12th gen got released) got an i7 11700kf + a Z590 mobo for $180 USD from a guy on Marketplace, and the motherboard is an AsRock Z590ac . The price was a steal but now it got me wondering if the previous owner didn't know the brand and that's why he got rid of it so cheap. Still works great and even runs Mac OS with clover.
ASRock, as per the lore passed down to me by a former coworker, started as a low cost, second line, for ASUS.
They would just throw crazy mobos together, often with new technologies and new types of components, to test the reaction of the markets. If a particular feature or design was well accepted, ASUS would improve it, repackage it and sell main brand boards with it.
Apparently, at some point, the brand became so popular it was spun-off and became a company on its own.
I have very good experience with their products.