Tag: Tariffs

  • T-Mobile, Verizon, AT&T Warn of Possible Phone Price Increases

    T-Mobile, Verizon, AT&T Warn of Possible Phone Price Increases

    Key Takeaways

    1. Executives from Verizon, T-Mobile, and AT&T are worried about new tariffs on foreign products affecting smartphone prices.
    2. Current tariffs include a general 10% and a doubled rate for devices made in China, leading to expected price hikes for consumers.
    3. Verizon’s CEO indicated that the company will not absorb significant tariff increases, suggesting that prices will rise for customers.
    4. AT&T’s CEO mentioned the need for innovative ways to help customers handle the upcoming price increases due to tariffs.
    5. Apple, holding a major market share, is impacted by tariffs and is shifting production from China to India, which may take time and potentially raise prices further.


    The top executives of the three biggest cell phone providers in the US, which are Verizon, T-Mobile, and AT&T, have all expressed concerns about the impact of new tariffs on foreign products. They have made it clear that they cannot absorb any rises in phone prices that may come from these tariffs.

    Tariff Effects on Smartphones

    While smartphones and tablets are temporarily exempt from reciprocal tariffs, they are still subject to a general 10% tariff from the Trump administration, which doubles for devices manufactured in China. The major carriers are evaluating the situation, but their leaders have collectively indicated that any price hikes will be passed on to consumers.

    Verizon’s CEO, Hans Vestberg, stated, “if the tariff is going to be as high as they say on the handsets, we are not planning to cover that in our work” and “we will not cover any enormous increase on tariffs on handsets.” This suggests that Verizon is preparing for significant price adjustments.

    Price Increases Coming

    For example, a Verizon iPhone 16 Pro Max currently priced at $1,199 at Best Buy, before the carrier’s trade-in discount of up to $1,000, could rise to $1,439 if the existing tariffs are enforced. Many customers have been buying iPhones quickly, anticipating these increases, which might lead to a drop in demand later on. Even if Apple moves production of US-bound iPhones away from China to countries with lower tariffs, prices could still go up.

    AT&T’s John Stankey mentioned, “So I think that if ultimately, costs are passed to us from those that we buy handsets from, unfortunately, for the customer, we’re going to have to come up with some new ways for them to figure out how to digest that increase in pricing.” He highlighted that while the business model may not change drastically, they will find innovative methods to help customers manage these price increases.

    Apple and Market Implications

    Apple held a dominant position in the US smartphone market last year with a 49.9% share, followed by Samsung at 21.4% and Motorola at 9.4%. This means Apple could be more affected by the tariff increases than others. Reports suggest that Apple is planning to release cheaper iPhones in the spring, allowing its more expensive Pro line to launch in the fall, which could help smooth out consumer purchasing patterns.

    Additionally, Apple is shifting its US-bound iPhone production from China to India, but this transition may take time. The multibillion-dollar investment for US production that Apple announced will take even longer and could increase prices further. T-Mobile’s CEO has clearly stated that these cost increases “have to be borne by the customer.” He added, “I mean, our model isn’t prepared for something like that.”

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  • North America Sees Surge in Desktop and Laptop Sales Amid Tariffs

    North America Sees Surge in Desktop and Laptop Sales Amid Tariffs

    Key Takeaways

    1. High tariffs on imports from China, reaching a minimum of 145%, are causing consumers to stock up on electronic devices, potentially leading to higher prices and lower supplies.
    2. Major companies like Dell, HP, and Lenovo are postponing laptop shipments to the US due to tariff impacts, while recent data shows significant increases in sales of desktops and laptops in North America.
    3. The International Data Corporation (IDC) reported a 7.6% revenue increase in the personal computer market, with laptop sales up by 26.9% and desktop sales up by 35.3% in Q1 2025 compared to Q1 2024.
    4. Both businesses and consumers are motivated to upgrade IT systems ahead of the end of Microsoft’s security support for Windows 10 in October 2025, pushing upgrades for devices that cannot run Windows 11.
    5. Despite strong sales in the PC hardware market, consumer confidence is declining, and a contraction in the market is expected in the second half of 2025, with the US gaming sector experiencing revenue drops.


    With a lot of parts made in China, high tariffs are making people stock up on electronic devices. The minimum tariffs of 145% on imports from China could lower supplies and make prices go higher. Some companies, like Dell, HP, and Lenovo, have started to postpone shipping laptops to the US. Recent data from the International Data Corporation (IDC) shows big jumps in sales of desktops and laptops in North America.

    IDC’s Role in Market Monitoring

    The IDC keeps track of sales of personal computers, software, services, and network infrastructure items. In the first quarter of 2025, total revenue rose to $19.9 billion, which is a 7.6% increase from the same time in 2024. The biggest growth was seen in personal computers, which include laptops and ready-made desktops. Laptop sales surged by 26.9%, desktop sales went up by 35.3%, and workstation sales climbed by 49.3% compared to Q1 2024. The graph below seems to have a mistake, as the right column should read “2025Q1”.

    Corporate and Consumer Reactions

    Companies felt a strong need to upgrade their IT systems to lessen the impact of tariffs. However, even regular consumers have acted fast. Another reason is that Microsoft will stop providing security updates for Windows 10 PCs in October 2025. Those whose devices can’t run Windows 11 might have hastened their plans to upgrade.

    Consumer Spending Trends

    Recent consumer spending data from March shows significant increases in retail sales. Yet, consumer confidence has taken a hit, with little progress seen in the negotiations about tariffs between China and the US. The IDC’s report mentioned that “market contraction should be expected in the second half of 2025.” It’s hard to believe that shoppers will keep buying expensive laptops and desktops at the same pace.

    On the other hand, while the PC hardware market is thriving, the US gaming sector faced downturns in March. Circana reported a 6% drop in revenue from video game software, hardware, and accessories compared to March 2024. Consoles and gaming accessories took the biggest hits, suggesting that consumers might be focusing more on work than fun. Still, strong pre-order sales for the Nintendo Switch 2 could help boost revenue significantly.

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  • Trump Tariffs Affect Nintendo Switch 2 and PS5, Supplier Says

    Trump Tariffs Affect Nintendo Switch 2 and PS5, Supplier Says

    Key Takeaways

    1. Trump announced a 145% tariff on electronics from China, negatively impacting U.S. companies like Apple.
    2. Initial exemptions for certain tech items were quickly retracted, meaning higher import fees for Chinese-made electronics will continue.
    3. Game consoles, including the Nintendo Switch 2, will not be exempt from the new tariffs, leading to potential price increases.
    4. Most Switch 2 consoles are manufactured in China, making it difficult for companies to avoid the tariffs.
    5. Nintendo has paused pre-orders for the Switch 2 in the U.S. and Canada, leaving the future price uncertain amidst potential cost increases.


    Trump has decided to place a 145% tariff on electronics from China, which is a big setback for U.S. companies such as Apple.

    Initial Relief and Subsequent Changes

    Over the weekend, there was a moment of relief when the U.S. government mentioned that some tech items, including smartphones and laptops, would be exempt from the new tariffs. However, this relief was short-lived as Trump later clarified that this exemption wouldn’t apply. Instead, electronics produced in China will be assigned to a different tariff category (according to BBC). Consequently, Chinese-made electronics will still incur higher import fees.

    Impact on Game Consoles

    Even if the exemption for certain devices like smartphones and laptops is upheld, game consoles are reportedly not included in this exemption. Consoles such as the Nintendo Switch 2 will still be subjected to the hefty 145% tariff. Nikkei Asia has claimed to have obtained an internal memo from a key supplier for both Apple and Nintendo, indicating that game consoles will face the 145% tariff regardless of the circumstances. This implies that products like the Switch 2 could see a notable hike in prices within the U.S. market.

    Manufacturing Concerns

    Adding to the challenges, a majority of the Switch 2 consoles are made in China. Although a smaller portion is produced in Vietnam, it isn’t enough to completely bypass the tariff. Sony also depends heavily on Chinese production for a large part of its PlayStation 5 manufacturing.

    In light of this situation, Nintendo has decided to halt pre-orders for the Switch 2 in both the U.S. and Canada. The company had initially aimed to start orders on April 9, but those intentions are now on pause with no new timeline provided.

    The Switch 2 was unveiled with a price of $499, but it remains uncertain whether Nintendo will maintain that price should tariffs increase production and shipping expenses.

  • US Implements New Tariffs on Electronics to Support Domestic Production

    US Implements New Tariffs on Electronics to Support Domestic Production

    Key Takeaways

    1. The U.S. will implement separate tariffs on imports of smartphones, computers, and semiconductors to boost domestic manufacturing.
    2. A “special focus type of tariff” will now apply to previously exempt consumer electronics, impacting companies like Apple and Samsung.
    3. The policy change aims to address national security concerns and reduce reliance on Southeast Asian manufacturing.
    4. Experts warn that the cost of products like iPhones could increase significantly as production shifts to the U.S.
    5. The new tariffs may alter global trade relations and raise concerns about supply chain stability.


    The United States is getting ready to implement separate tariffs on imports of smartphones, computers, semiconductors, and similar components in the next one to two months, as stated by US Commerce Secretary Howard Lutnick. According to ABC News on April 13, 2025, this action indicates a strategic shift aimed at bolstering domestic manufacturing.

    New Tariff Details

    Consumer electronics imports will now be subject to a “special focus type of tariff.” “We need to have semiconductors, chips, and flat panels made in America. We can’t depend on Southeast Asia for everything that operates for us,” Lutnick explained. This announcement follows President Donald Trump’s decision from April 11 to exempt smartphones, laptops, and other electronics from reciprocal tariffs imposed on April 2, a day referred to as “Liberation Day.”

    Impact on Importers

    The US Customs and Border Protection notice, effective from April 5, included products such as hard drives and memory chips, providing relief to companies like Apple and Samsung. Lutnick later clarified that these products will now be included in a “special focus type of tariff” set to begin soon, even though they were previously exempt from reciprocal duties. To avoid the tariff deadline imposed by Trump, Apple moved its inventory from India and China to the US in the last week of March.

    National Security and Economic Concerns

    This policy change aims to tackle national security issues, with Lutnick declaring that discussions with other countries are off the table. “These are things that are national security that must be made in America,” he mentioned. Experts have warned that “Made in America” iPhones could potentially rise to $3,500, indicating possible cost increases as production is shifted. The Trump administration aims to protect consumers and assist US firms while promoting self-sufficiency, although the swift policy change raises concerns about the stability of supply chains.

    As these tariffs come into play, the emphasis on domestic chip and electronics production could significantly alter global trade relations.

  • US Freezes Tariff Hikes Except for China Facing 125% Increase

    US Freezes Tariff Hikes Except for China Facing 125% Increase

    Key Takeaways

    1. Apple is moving iPhones and other products to the US to stabilize retail prices amid new tariffs.
    2. The Trump administration has paused planned tariff increases for 90 days for countries not retaliating against US tariffs.
    3. China is not included in the tariff pause, with tariffs increasing from 104% to 125%.
    4. Over 75 countries have asked the US government to negotiate a solution regarding tariff increases.
    5. The stock market reacted positively, with the S&P 500 rising 9.5% and the Nasdaq Composite increasing 12.2%.


    Apple has recently moved a significant quantity of iPhones and various other items from its stock in India and China to the US. This action was taken to maintain the retail prices as stable as possible in light of the new tariffs placed on all imports to the US.

    Tariff Pause for 90 Days

    The Trump administration has put a stop to the planned tariff increases for 90 days concerning countries that have not retaliated against US tariffs. Therefore, these nations will face a universal US tariff of 10% until July. When asked about the reason for this delay, the president remarked: “People were jumping a little bit out of line. They were getting yippy.”

    Increased Tariffs on China

    However, as the title suggests, China is not included in this pause. The Trump administration has escalated the already high 104% tariff to a staggering 125%, marking the start of what is being called a new trade war between the two nations. The motive? In retaliation to the previously set 104% tariff on goods exported from China, Beijing imposed 84% tariffs on imports from the US. Following this, the Trump administration accused China of showing a “lack of respect” and increased the tariff to 125%, which took effect immediately.

    Negotiations and Market Impacts

    Over 75 countries have urged the US federal government to “negotiate a solution” since the Trump administration revealed its plans for tariff increases, as stated by the president. Ultimately, he decided to ease off, paving the way for three months of negotiations with multiple nations.

    Many of you might already know how these tariff changes impact the stock market. On Wall Street, the S&P 500 index surged by 9.5%, marking its largest single-day rise since 2008. The Nasdaq Composite also rose by 12.2%—its best performance since 2001.

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  • GPUs Exempt from New Tariffs, But 25% Aluminum Tariffs Remain

    GPUs Exempt from New Tariffs, But 25% Aluminum Tariffs Remain

    Key Takeaways

    1. President Trump’s administration implemented “reciprocal tariffs” affecting around 90 countries, raising concerns about GPU price increases.
    2. A federal order suggests that GPUs are unlikely to be impacted by these reciprocal tariffs.
    3. Graphics cards will still incur a 25% tariff related to aluminum imports from China and other nations.
    4. Important tariff codes for GPUs and related components are missing from the federal order’s list of affected products.
    5. Current tariffs on products from China to the US reach 104%, with China retaliating with 84% tariffs on American goods.


    President Trump’s administration has put in place what is being called “reciprocal tariffs” affecting around 90 countries, which has raised worries about the potential impact on GPU prices, already expected to rise. However, as per the federal order released on April 7, it appears that components like GPUs are unlikely to be influenced by these reciprocal tariffs. Nonetheless, graphics cards will still face a 25% tariff focused on aluminum for imports from China and other nations.

    Details on Tariff Codes

    The federal order enumerates all products and components impacted by the reciprocal tariffs with their HTSUS or Harmonized Tariff Schedule of the United States codes. According to Annex II, the order includes “Electronic integrated circuits: processors and controllers,” “Electronic integrated circuits: memories,” and “Parts of electronic integrated circuits and micro assemblies,” along with their respective HTSUS codes.

    Missing Codes

    However, the list does not mention codes for graphics cards or “Printed circuit assemblies for rendering images onto computer screens (graphics processing modules)” and “Parts and accessories of machines with heading 8471, whether or not including fan hubs or LEDs but not including other goods of heading 8541 or 8542).” These are classified under tariff codes 8473301180 and 8473305100, which PCMag points out are both absent from the Annex.

    This indicates that GPUs might be free from at least the reciprocal tariffs. Yet, since they’re categorized as aluminum-related products, they remain subject to the overarching 25% tariffs that were first imposed on imports. While this is the present scenario, there’s a chance for things to worsen as separate chip-focused tariffs may come into play. Currently, products coming from China to the US are facing a total tariff of 104%, while China has responded with retaliatory tariffs of 84% on all American goods.

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  • Nintendo Switch 2 Pre-Orders Delayed in Canada to Align with US

    Nintendo Switch 2 Pre-Orders Delayed in Canada to Align with US

    Key Takeaways

    1. Pre-orders for the Nintendo Switch 2 in the US and Canada have been delayed due to tariffs.
    2. Canadian pre-orders, originally set for April 9, have been put on hold indefinitely to align with the US schedule.
    3. The launch date for the Switch 2 is still confirmed for June 5, despite the pre-order delays.
    4. The US pricing is $450 for the console and $500 for the Mario Kart World bundle; Canadian prices are 630 CAD and 700 CAD, respectively.
    5. Despite tariff challenges, the Switch 2 is expected to be the fastest-selling console, with a projected 15 million units to be sold in 2025.


    Nintendo Switch 2 pre-orders in the US have been pushed back due to tariffs, and Canada is now facing a similar situation. The handheld device was supposed to be available for pre-order in Canada starting April 9, the same as in the US, but this has now been put on hold indefinitely. Nintendo hasn’t given any updates on when the Switch 2 will be available for pre-order in either country.

    Pre-Order Timing Adjustments

    As reported by Mobile Syrup, Nintendo stated that pre-orders for the Switch 2 in Canada will not launch on April 9 “to align with the timing of pre-orders to be determined in the U.S.” More details will be shared later, but the launch date of June 5 is still set in stone, for the moment.

    Understanding the Delay Reasons

    The hold-up in pre-orders for the US is due to tariffs, as the company believes it needs to “assess the potential impact of tariffs and evolving market conditions.” Canada’s delay in pre-orders isn’t much of a shock since it is one of the major countries affected by the tariffs that were put in place by President Trump’s administration.

    Pricing and Expectations

    The price for the Nintendo Switch 2 is set at $450 in the US, whereas the Mario Kart World bundle is priced at $500. In Canada, the console costs 630 CAD, and the bundle is at 700 CAD. The company is maintaining the June 5 launch date, suggesting that they anticipate the issues caused by tariffs and pricing concerns to settle by then.

    Even with the tariffs, the Switch 2 is projected to become the fastest-selling console ever, with an estimated 15 million units expected to be sold in 2025, even though sales will only start halfway through the year.

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  • Apple Shifts India-Made iPhones to US Amid Price Hike Fears

    Apple Shifts India-Made iPhones to US Amid Price Hike Fears

    Key Takeaways

    1. Increase in Store Traffic: Apple Stores are experiencing a rise in customer visits due to concerns over potential price hikes from tariffs.

    2. Lack of Corporate Guidance: Apple employees currently lack specific information to reassure customers until the earnings announcement on May 1.

    3. Rerouting Production: Apple is shifting more iPhones manufactured in India to the US market to avoid high tariffs, aiming to produce around 25 million iPhones in India this year.

    4. Potential Cost Increases: The iPhone 16 Pro’s production cost could rise significantly due to tariffs, possibly leading to higher retail prices.

    5. Long-Term Production Shifts: Moving iPhone production to the US is a long-term process that may not result in reduced costs, as Apple adjusts its strategy to mitigate tariff impacts.


    Apple iPhone customers are rushing into stores across the US, asking whether prices will go up following a 34% tariff imposed by the Trump administration on goods coming from China. There’s also a threat of this rate increasing to 50% if China decides to retaliate, which it has.

    Increase in Store Traffic

    Employees at Apple Stores are noticing a significant rise in customer visits, reminiscent of the hustle and bustle seen during the holiday shopping season. Many of these prospective iPhone buyers are concerned about potential price hikes. This surge in inquiries has also led to a boost in sales compared to previous years during the same timeframe.

    Lack of Corporate Guidance

    At the moment, Apple staff don’t have specific guidance on how to reassure anxious customers until the company announces its earnings on May 1. However, Apple is proactively taking steps to mitigate any adverse effects that might arise from the steep tariff increase.

    Rerouting Production

    The company has accumulated several months’ worth of device inventory in the US and is also shifting more iPhones manufactured in India to the US market. These devices incur much lower import tariffs, with Apple planning to produce around 25 million iPhones in India this year.

    If a significant number of these iPhones are sent to the US rather than being sold locally, it could potentially meet roughly half of the American demand for these devices. The high tariff on products from China could increase the iPhone’s Bill of Materials (BOM)—the expense involved in assembling them—by approximately 55%.

    Potential Cost Increases

    For example, the iPhone 16 Pro, which currently has a BOM cost of $550 and is priced at about $917 on Amazon in a Grade A renewed condition, could end up costing Apple over $800 to produce and import due to the newly imposed tariffs.

    To maintain its profit margins, Apple might need to raise the price of the iPhone 16 Pro to match that of a fully loaded 1TB iPhone 16 Pro Max, which may not be appealing to many consumers in the US.

    Long-Term Production Shifts

    Transitioning iPhone production to the US will take time and will not necessarily lower costs. Thus, it appears that Apple is making efforts to adjust its strategy and lessen the impact of tariffs on American consumers as best as it can.

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  • New Trump Tariffs May Raise Nintendo Switch 2 Prices Further

    New Trump Tariffs May Raise Nintendo Switch 2 Prices Further

    Key Takeaways

    1. Nintendo has moved much of its hardware production to Vietnam to avoid U.S. tariffs on China, but new tariffs now threaten this strategy with a 46% import charge on Vietnamese goods.

    2. Nearly 50% of Nintendo’s hardware is produced in Vietnam, including the Switch and the upcoming Switch 2, which is set to launch on June 5th.

    3. Despite the shift to Vietnam, Nintendo still relies on China for some manufacturing, raising concerns about potential price increases for consumers.

    4. The expected price for the Switch 2 has risen from $400 to $450, with additional costs for games like Mario Kart World, which is priced at $80.

    5. Cambodia could be a potential alternative for production, but it faces its own challenges with steep 49% tariffs, creating uncertainty for future pricing stability.


    Nintendo has shifted a lot of its hardware production to Vietnam to reduce the effects of U.S. tariffs on China. Sadly, President Trump’s new tariffs have introduced a hefty 46% charge on imports from Vietnam. Fans of gaming, especially those who are let down by the Switch 2 price, are now worried about potential price increases in the future.

    Shift to Vietnam

    The Japanese gaming giant started moving its factories to Vietnam back in 2019 as a response to previous tariffs from Trump aimed at China. Current estimates suggest that nearly 50% of Nintendo’s hardware is produced in this Southeast Asian nation. Among these products are the well-known Switch and the upcoming Switch 2 consoles. To counter an ongoing trade conflict, Nintendo sent a significant amount of its new gaming system to the U.S. as early as January.

    Ongoing Dependence on China

    Despite this shift, Nintendo still relies on China for some of its manufacturing, which means there are limits to its strategy. Gamers are left pondering whether the company had foreseen the new Trump tariffs affecting Vietnam. Some leaks regarding the Switch 2 hinted that it would be priced at $400. However, it turns out that the handheld device will actually cost $450, which is more than expected. On top of that, the costs for upgrading with Mario Kart World are surprising many, as it comes with an $80 price tag. Alternatively, consumers can buy a Switch 2 bundle that includes the game for $499.99.

    Future Price Stability

    If Nintendo had properly considered future tariffs, gamers might have seen a more stable price for the Switch 2. It’s also unlikely that Nintendo will make any adjustments before the console launches on June 5th. Nonetheless, it might not be long before buyers feel the effects of these import costs.

    Cambodia appears to be a clear alternative for producing Nintendo’s consoles. The company already has operations in that country. However, Cambodia has recently been slapped with steep 49% tariffs. While consoles were exempt from China tariffs back in 2019, it’s uncertain if gamers can count on another break this time around.

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  • Trump Tariffs Could Raise Game Costs and Reduce Disc Production

    Trump Tariffs Could Raise Game Costs and Reduce Disc Production

    Key Takeaways

    1. Analysts warn that tariffs imposed by the Trump administration may lead to a decline in the production of physical game discs, pushing publishers towards digital-only models.
    2. A 25% tariff on imports from Mexico is expected to reduce the availability of physical game discs in the US and potentially raise prices for both physical and digital versions.
    3. The production of game discs is heavily reliant on Mexico, with significant implications for the gaming industry due to the tariffs.
    4. A 20% tariff on consoles imported from China may lead to rising prices, although current inventory may keep prices stable for now.
    5. Spending on physical video game software in the US has been declining since 2021, adding to the challenges faced by physical game production.


    Analysts have raised concerns that the tariffs recently imposed by the Trump administration may negatively affect the production of physical game discs. This change might lead publishers and developers to abandon physical copies altogether. The tariffs, which took effect on March 4, target Canada, Mexico, and China, with Mexico being highlighted as the primary producer of these game discs.

    Impact on Game Production

    Circana analyst Mat Piscatella mentioned on the social media platform Bluesky that while video games represent a tiny fraction of the overall turmoil caused by the Trump tariffs, it wouldn’t be surprising if physical games “just don’t get made” anymore. He suggested that many publishers may lean towards a digital-only model and stop offering physical versions of their games altogether.

    Decline in Discs and Rising Prices

    In January, Piscatella pointed out that a significant portion of physical game disc production takes place in Mexico. With the introduction of a 25% tariff on imports from Mexico to the US, a decrease in the number of disc-based games entering the US market is anticipated. For those games that still offer discs, prices are expected to rise, even for digital editions, to keep price equality. Additionally, while production could shift to the US, it would necessitate considerable investment. However, spending on physical video game software in the US has been declining since 2021.

    Hardware Consequences

    A similar situation is expected for hardware, as around 75% of all consoles sold in the US are imported from China. With a 20% tariff now in place, prices may rise in the future. For now, PC hardware and consoles will likely keep their current prices until the existing inventory from before the tariffs is sold out. Interestingly, in February, Newegg reportedly cited the tariffs as a reason for the increase in prices of Nvidia GeForce RTX 5080 and RTX 5090 GPUs in a post on X, although those posts have since been removed.

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