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'Why PC Builders Should Stock Up on Components Now' (pcmag.com)
Michael Kan, writing for PCMag: NZXT is a popular PC desktop case vendor, but the California-based company recently had to raise its prices. The reason? The new US tariffs on Chinese imports includes PC cases. In September, the Trump administration imposed the 10 percent duty, which also cover motherboards, graphics cards, and CPU coolers from the country. As a result, NZXT had to introduce a 10 percent price increase on PC cases to deal with the added costs, VP Jim Carlton told PCMag in an interview.
And building a PC could get even more expensive in 2019; US tariffs on Chinese-made goods will rise from 10 percent to 25 percent in January. "If I needed to build a system in the next six months, I'd definitely build it before the end of the year," Carlton told us. For PC builders, the tariffs risk adding a few hundred dollars to the total cost of components for a custom desktop. "If it's a $2,000 purchase on 25 percent tariffs, it's going to be a $2,500 purchase," Carlton said. "So we are very concerned with the direction of where this is going. I don't have a 10 percent [profit] margin I can just throw away and absorb the tariffs," he added. "And certainly no one has a margin for 25 percent."
And building a PC could get even more expensive in 2019; US tariffs on Chinese-made goods will rise from 10 percent to 25 percent in January. "If I needed to build a system in the next six months, I'd definitely build it before the end of the year," Carlton told us. For PC builders, the tariffs risk adding a few hundred dollars to the total cost of components for a custom desktop. "If it's a $2,000 purchase on 25 percent tariffs, it's going to be a $2,500 purchase," Carlton said. "So we are very concerned with the direction of where this is going. I don't have a 10 percent [profit] margin I can just throw away and absorb the tariffs," he added. "And certainly no one has a margin for 25 percent."
Sure, but tariffs themselves don't actually address any of those problems. Especially when there are no local sources for any of these goods. This money doesn't go to improve the working conditions of the poor workers. It doesn't fix any environmental problems. It rarely changes government regulations.
Let's be clear. All tariffs are are taxes paid for by consumers. They don't punish foreign countries or companies nearly as much as proponents claim.
Meanwhile Trump's tax cut wasn't as big as folks think.
It was plenty big for certain people with several commas in their annual income. That isn't the real problem though. The real problem is that they cut taxes without cutting either Medicare/Medicaid or the defense budget or social security which together account for around 3/4 of federal spending. So we continue to accrue debt at a rate of nearly a $trillion per year with no end in sight which our children are going to have to pay off sooner or later. In 2017 we basically borrowed the entire defense department budget. ALL of it.
So enjoy the party while it lasts. Sooner or later the bills will come due and your children will "thank" you for it.