Thursday, April 10th 2025
GPUs Could be Exempt from Massive Trump Tariffs Through USMCA Assembly Loophole
High-performance GPUs manufactured in Taiwan could now enter the US market tariff-free through a technical loophole in the United States-Mexico-Canada Agreement (USMCA), found by a research firm SemiAnalysis. Companies can route Taiwan-made GPUs through assembly facilities in Mexico and Canada, effectively circumventing the 32% import duty that would otherwise apply to direct shipments from Taiwan. The exemption hinges on a Most-Favored-Nation clause within the USMCA framework that specifically classifies digital processing units (HTS 8471.50), automatic data processing machine units (HTS 8471.80), and their associated components (HTS 8473.30) as "originating goods." This classification applies regardless of manufacturing origin, creating a duty-free pathway for NVIDIA HGX boards, GB200 baseboards, and RTX GPU cards that undergo final assembly in North American facilities.
The strategy capitalizes on two complementary policy mechanisms. First, President Trump's March 7 executive orders maintained existing USMCA exemptions, preserving the duty-free status for compliant goods from Canada and Mexico. Second, the USMCA's expanded definition of originating products creates a classification framework that treats assembled servers and related components as North American products despite their core manufacturing in Taiwan. For US technology firms, the additional logistical complexity of cross-border assembly operations is offset by eliminating substantial import duties on these high-value components. This practice mirrors established protocols in agricultural imports, where products like Mexican avocados gain preferential treatment under similar origin rules. The global supply chain is adapting quickly, especially in high-margin areas like GPUs, which power AI workloads. We are yet to see how companies set up manufacturing and logistics in the new era of tariff-driven narrative.
Source:
SemiAnalysis
The strategy capitalizes on two complementary policy mechanisms. First, President Trump's March 7 executive orders maintained existing USMCA exemptions, preserving the duty-free status for compliant goods from Canada and Mexico. Second, the USMCA's expanded definition of originating products creates a classification framework that treats assembled servers and related components as North American products despite their core manufacturing in Taiwan. For US technology firms, the additional logistical complexity of cross-border assembly operations is offset by eliminating substantial import duties on these high-value components. This practice mirrors established protocols in agricultural imports, where products like Mexican avocados gain preferential treatment under similar origin rules. The global supply chain is adapting quickly, especially in high-margin areas like GPUs, which power AI workloads. We are yet to see how companies set up manufacturing and logistics in the new era of tariff-driven narrative.
44 Comments on GPUs Could be Exempt from Massive Trump Tariffs Through USMCA Assembly Loophole
"Not nice" for US availability, "not nice" for prices everywhere.
Sorry, but I say cut the south off of everything for a bit, send our goods elsewhere, since he has said multiple times that he doesn't need anything from Canada. Except our natural resources because they might as well have none.
of course, Nvidia is gets an exception, on the 100,000 dollar overpriced AI stuff…
Disclaimer, since tensions are high and some people might take it the wrong way: all of this is intended to be humor, that most likely missed the mark. :)
They will see if you have a dick implant when you are sitting in your car :laugh:
The fact that one guy can invoke some ancient law granting himself emergency powers to bypass the constitution to invoke mad king style will be won't be tariffs means that the system was rotten at the core for a while and was just waiting for someone to come along and take advantage of it.
America's unspoken super power was always our legal framework and stability, but that's effectively gone.
He went to war only to turn around at the first sign of blood. He ain't coming back to the front line, this is the art of losing any space to deal at all :)
The next Waterloo is China as the favorable target. That'll backfire much the same. A good lesson in humility. Let's see that 145% tariff on rare earth metals, lets go.
Also, even during this supposed 'pause' the EU is for example not leaving a single opportunity on the table to talk about their plans for retaliation. We're loading tactical nukes over here and won't need to fire them anymore. The Big Tech taxation is going to be fun to watch ;) Musk is already in the not-happy camp, clearly, and this hasn't even started proper. And on top of that, we're keeping the door open for negotiation towards the opposite of what Trump says he wants. The initiative is already stolen from the US, at this point and it ain't coming back. The art of the deal.This is what separates the US from Russia but Trump chose the Putin approach, the one nobody accepts except those that think they can get rich off doing so.
Trust is everything. You'd be damn stupid to engage in any deals with a rat like this, right? Might even prefer taking a substantial loss just not to.That 145% tariff is certainly not going away for as long as it does last, but its great deterrence for more stupidity, I suppose you should count your blessings, for as long as it lasts.
I hope this teaches the US a lesson they won't forget for the next 30 odd years about who they elect and what sentiments they seek to cultivate. History repeats...
This is also going to be a huge net positive for the sentiment in the EU around all these fake news diplomats.
As for our asses, yeah, still trying to find it after the last few days lol
Status report friday morning:
US: red. China: green. EU: green. Canada: green.
Damage has been done.
Basics like food and even Fords assembled in Mexico are subject to the tariffs, increasing prices to ridiculous levels.
Assembling items in the U.S. from imported goods should not be exempt from the tariffs.
Why not tariff the air that comes across the border :D
we need to contain the americans, for everyone' sake
The more centrist you go the more you realize most Americans want the same things at the end of the day. And unsurprisingly, most Americans are not actually truly pure left or right, despite what our toxic media wants everyone (including us) to believe.There's no reason to trust a guy who has actively shown that he is not for ANYONE ELSE'S interests but his own, and what he wants you to believe by extensions: The United States.
I don't think anyone should be trusting the guy who has made as many nail-bitingingly worrying statements that fringe on insanity as him. And now were comparable to Putin. What a country I live in sometimes..All it takes is one piece of crap to make people realize they need to unite.. and the EU is responding accordingly. I'm sure the whole world as a whole will be okay. As for us.. well, you know.
I do hope it teaches us the a lesson, but knowing how history goes, it will probably only embolden bad actors to try to push the ante more and more. I hate it, but our country is often set by precedent. And you know who has set a lot of very worrisome ones that I know for a fact even presidents after him who don't follow his beliefs will end up abusing. This is why I do not enjoy living in this country sometimes.Fear is one hell of a motivator to vote for bad actors. History often repeats itself in that sense. Country is unhappy, they'll vote for anyone who's loud enough and promises simple fixes to complex problems. Unfortunately, they're gonna start regretting that choice. Already seeing folks I know who are less radical regretting their vote.