GPUs Could be Exempt from Massive Trump Tariffs Through USMCA Assembly Loophole

[AleksandarK]

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.



View at TechPowerUp Main Site | Source

 

[mb194dc]

So the system will work, for Canada and Mexico ? US consumers can just cross the border anyway presumably buy and just bring back as their personal goods, right...

 

[Scircura]

My guess is that US-bound GPU's will be either stockpiled in their origin countries, or instead sold in countries that have a reasonable and stable tariff rate. The "US tariff loophole" country du jour (more like country de l'heure) changes faster than the importers can adapt.

"Not nice" for US availability, "not nice" for prices everywhere.

 

[maxfly]

Now we just need the key component, actual GPUs to test this loophole.

 

[freeagent]

So the system will work, for Canada and Mexico ? US consumers can just cross the border anyway presumably buy and just bring back as their personal goods, right...

Sure, but you will get nailed at the border.

 

[Six_Times]

Funny how publishers intentionally leave out the word reciprocal.

 

[Vayra86]

The tariffs... that never materialized.

 

[R-T-B]

The tariffs... that never materialized.

They apply to nearly everything else at a minimum of 10% dude. They will materialize if nothing is done.

 

[stickleback123]

I love this, it implies an absurd and naive believe that this administration follows the law or honours treaties that other nations signed with the US in good faith (including ones agreed and signed by the last Trump administration).

 

[freeagent]

The tariffs... that never materialized.

We still have 25% against our cars, steel, and aluminum.

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.

 

[Bomby569]

I hope the tariffs stay on for everything at 200%, you can't deploy the Trump tariffs and not deal with the consequences.

 

[redeye]

The tariffs... that never materialized.

but, if you’re in the US, and in the computer industry or buy in the computer industry, (in the USA) that 145% tariff it’s not going away. so you will be affected. IMO, europeans have gotta be laughing their ass off because they had to get used to higher prices in euros compared to the US, now the US is gonna get a huge dose of “why do I have to pay this”?…

of course, Nvidia is gets an exception, on the 100,000 dollar overpriced AI stuff…

 

[Dr. Dro]

I hope the tariffs stay on for everything at 200%

All or nothing. We need a 690%, non-reciprocal tariff to assert the dominance of the United States in all manner of industry and innovation. America, f yeah.

Sure, but you will get nailed at the border.

Brazilians have historically smuggled electronics and other goods with high tariffs such as liquor and designer shoes from Paraguay, they'll just have to learn how to do the same from the Russians through Alaska

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.

 

[freeagent]

Brazilians have historically smuggled electronics and other goods with high tariffs such as liquor and designer shoes from Paraguay, they'll just have to learn how to do the same from the Russians through Alaska

I dunno man.. our border tech is pretty intense..

They will see if you have a dick implant when you are sitting in your car

 

[mechtech]

I dunno man.. our border tech is pretty intense..

They will see if you have a dick implant when you are sitting in your car

Even the low tech is pretty intense lol

 

[GodisanAtheist]

I love this, it implies an absurd and naive believe that this administration follows the law or honours treaties that other nations signed with the US in good faith (including ones agreed and signed by the last Trump administration).

-Yeah, it's been a hoot watching analysts and journos clutching at legal straws for some sort of good news.

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.

 

[Vayra86]

They apply to nearly everything else at a minimum of 10% dude. They will materialize if nothing is done.

I'm sure they will, for now..., subject to change, at any time Trump gets told what he should do, forced by for example the US debt obligations. He was this close to being the next Liz Truss and has now postponed that reality by 90 days.

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.

America's unspoken super power was always our legal framework and stability, but that's effectively gone.

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.

but, if you’re in the US, and in the computer industry or buy in the computer industry, (in the USA) that 145% tariff it’s not going away. so you will be affected. IMO, europeans have gotta be laughing their ass off because they had to get used to higher prices in euros compared to the US, now the US is gonna get a huge dose of “why do I have to pay this”?…

of course, Nvidia is gets an exception, on the 100,000 dollar overpriced AI stuff…

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.

 

[Bomby569]

I hope this teaches the US a lesson they won't forget for the next 30 odd years about who they elect

i think you're asking too much of them, completely out of their reach.

 

[Caring1]

Hilarious how ill thought out tariffs are affecting even those voters that think he's a god.
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.

 

[Bomby569]

Assembling items in the U.S. from imported goods should not be exempt from the tariffs.

So now even just the assembly should have tariffs?
Why not tariff the air that comes across the border

we need to contain the americans, for everyone' sake

 

[Vayra86]

i think you're asking too much of them, completely out of their reach.

No I do hold the average American to a higher standard, people just need their reality check. Its like gpu purchases. We all want the same things, even if we argue for days.

 

[Bomby569]

No I do hold the average American to a higher standard,

you're either too optimistic, too young or too naive.

 

[Vayra86]

you're either too optimistic, too young or too naive.

We need optimism, its what keeps us from things far worse. Thats not naivety, it is wisdom.

 

[GodisanAtheist]

We need optimism, its what keeps us from things far worse. Thats not naivety, it is wisdom.

- Calm your jets Picard, we're living in the world of Babylon 5 not Star Trek...

 

[Scattergrunt]

- Calm your jets Picard, we're living in the world of Babylon 5 not Star Trek...

There's always a place for optimism. Do I think its a bit misplaced? Sure, but I respect the fact that he wants to be optimistic.

No I do hold the average American to a higher standard, people just need their reality check. Its like gpu purchases. We all want the same things, even if we argue for days.

That's the root problem of US politics.. if you boil it down, we all end up sort of wanting the same things, but its the way we choose to go about those problems that seem to divide us apart even more. At least among the more normal, less radical, stupid people. It's when you get to issues about the constitution and stuff that you see more radical opinion shift.

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.

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.

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..

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.

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.

Hilarious how ill thought out tariffs are affecting even those voters that think he's a god.

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.