The global technology landscape is currently facing a significant challenge: potential delays in GPU shipments. These delays stem from a confluence of factors, most notably the imposition of tariffs and the resulting uncertainty surrounding international trade policies. This situation has far-reaching implications for various industries, from PC gaming to AI research and development.

The primary catalyst for these concerns is the recent wave of tariffs implemented by the US government, particularly those targeting goods imported from China and Taiwan. These tariffs, enacted under President Trump's "reciprocal tariffs" initiative, have created a complex and rapidly evolving trade environment. While certain electronics components, such as CPUs and memory chips, have been granted exemptions, GPUs have largely been left out, facing potential tariffs as high as 145% if assembled in China.

This has prompted immediate responses from manufacturers and suppliers. Many original design manufacturers (ODMs) have reportedly paused imports and are not accepting new orders, adopting a "wait and see" approach to assess the long-term implications of the tariffs. This hesitancy is understandable, as the fluctuating tariff rates and the possibility of further policy changes create significant financial risks. A supplier doesn't want to import a product at a 145% rate only to have the tariff potentially lowered the next day.

The impact of these shipment delays could be substantial. Custom PC builders, like Puget Systems, have voiced concerns about potential GPU shortages, which could lead to increased prices for consumers and businesses alike. The company estimates they only have enough GPUs to last them for 30 to 60 days. This is because the tariffs add a significant cost burden to third-party vendors who assemble graphics cards using chips from companies like Nvidia. The tariffs might either hurt Nvidia's margins or make its GPUs more expensive for buyers in America.

Furthermore, the tariffs also affect other PC components from China, such as a $150 motherboard, which could still remain somewhat affordable with a 145% tariff. However, with a $2,000 video card, it's just not”. This is incentivizing companies to explore alternative manufacturing locations and logistical workarounds, such as nearshoring to Mexico.

One potential solution lies in leveraging the United States-Mexico-Canada Agreement (USMCA) to avoid tariffs on GPUs assembled in Mexico. Companies like Nvidia are reportedly exploring this option, potentially shifting assembly operations to Mexican facilities. However, reshoring isn't a straightforward process, and analysts predict that while tariffs may be a positive catalyst, a massive wave of projects returning to the U.S. in the near term is unlikely.

Another strategy involves importing tariff-exempt chips separately and assembling them in the U.S. or Mexico, although this approach introduces additional logistical complexities. Some believe that graphics cards, GPU modules, and motherboards can be imported to the U.S. without tariffs and then soldered to an appropriate printed circuit board.

While Trump has implemented a 90-day pause on tariffs, excluding China, there is still a 10% base tariff and a 25% tariff on semiconductor goods. The tariffs are causing “confusion,” “uncertainty” and “pain” in the channel, even if some agree with the White House’s goal of fixing U.S. trade issues and boosting domestic manufacturing. For Maingear CEO Wallace Santos, he knew the cost of his company's laptops would get hit, so he decided to move assembly from Asia's largest manufacturing hub to Taiwan.

In addition to the tariff-related challenges, the GPU market is also influenced by other factors. The increasing demand for GPUs in AI, gaming, and other high-performance computing applications has led to supply constraints and elevated prices. The global GPU market is projected to experience substantial growth in the coming years.

Nvidia has unveiled its next-generation GPUs that promise to redefine AI computing power and speed. Announced at the Nvidia GPU Technology Conference (GTC) 2025, the roadmap introduces the Blackwell Ultra GB300 (shipping later this year), followed by the Vera Rubin (2026) and the Rubin Ultra (2027), each promising exponential performance gains.

AMD is taking a more aggressive approach to avoid the supply chain issues that have plagued Nvidia's recent launches. With its upcoming Radeon RX 9070 and 9070 XT GPUs, AMD is ensuring that gamers, creators, and PC enthusiasts can actually get their hands on the latest hardware—unlike Nvidia's RTX 50-series, which has been marred by stock shortages and scalper-driven price hikes.

The situation surrounding GPU shipments remains fluid. While the potential for tariffs poses a significant threat, companies are actively exploring strategies to mitigate the impact. The long-term effects on the market will depend on the evolution of trade policies, the success of alternative manufacturing strategies, and the continued growth in demand for GPU technology.