Asus Shifts Most US-Bound Manufacturing Away from China to Avoid Tariffs: What This Means for Consumers

Asus, a leading technology company, is shifting the majority of its US-bound manufacturing operations away from China due to increased tariffs imposed by President Trump. In response to this development, Asus executives have revealed plans to expand production bases in Southeast Asia, specifically in Thailand, Vietnam, and Indonesia. At present, over 90% of the company’s production for motherboards and PCs has already been distributed to these new regions.

In April, Trump threatened tariffs as high as 145% on Chinese imports, a move that was mostly put on hold amid US-China trade talks. Currently, the import rate stands at 30%, although negotiations have yet to yield a deal, and Trump has extended the tariff pause until Nov. 10.

The PC industry, including Asus, has managed to circumvent much of Trump’s trade war as President exempted chips, computers, and phones from his reciprocal tariffs on foreign markets. However, the company acknowledged that the situation could change, with Trump recently suggesting a potential 100% tariff on foreign chips, which would likely affect computer, phone, and monitor imports as well.

Trump has not disclosed details about the chip-focused tariffs but has created an exemption for companies investing in new US manufacturing. This could potentially save companies like Nvidia and Taiwan’s TSMC, both of which have recently announced billion-dollar investments in US factories, from these tariffs.

Asus executives noted that if the “total cost elevation is still beyond what we can absorb” once Trump’s tariff policies are formalized, they might need to raise prices, either for consumers or through distribution channels.

Meanwhile, China continues to bear a 20% tariff imposed by Trump in March, with no known exceptions. The White House may also reintroduce a 25% tariff on Chinese-made graphics cards and motherboards later in September.