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According to a report from Tom’s Hardware, approximately 60% of NVIDIA’s DGX and HGX AI datacenter servers could bypass the latest U.S. tariffs, as they are manufactured in Mexico. The 60% figure is an estimate based on all U.S. server imports in 2024, not just NVIDIA’s. Still, given its market dominance, the ratio likely reflects NVIDIA’s share, the report adds.
The report notes that these tariffs have raised market concerns for NVIDIA, since semiconductors remain largely exempt, whereas server hardware is not.
As noted in the report, NVIDIA’s export regulations website shows that its DGX and HGX servers fall under HTS codes 8471.50 and 8471.80 in the U.S. Harmonized Tariff Schedule—categories that are exempt from U.S.-Mexico tariffs.
This exemption stems from the USMCA agreement between the U.S., Canada, and Mexico—signed during Trump’s first term—which designates digital and automatic data processing units as tariff-exempt, as noted in the report. Tom’s Hardware further points out that if tariffs continue to rise, companies like NVIDIA may increasingly turn to the USMCA as a potential workaround to minimize costs.
As highlighted by TrendForce, in the AI server segment, Mexico—being excluded from the tariff list—remains a strategic re-export hub for ODMs serving U.S. clients under the USMCA agreement. However, ongoing political and economic uncertainty may prompt OEMs and CSPs to adopt a more cautious procurement strategy. As a result, TrendForce has slightly lowered its 2025 AI server shipment growth forecast to 24.5% year-over-year.
NVIDIA Expands Server Production in Mexico with Foxconn
Furthermore, the report from Tom’s Hardware indicates that NVIDIA is expanding its server manufacturing capacity in Mexico, with Foxconn on track to complete its Chihuahua plant in 2025.
Production of NVIDIA’s GB200 NVL72 AI servers is already underway in Mexico. According to Mexico Business News, citing Expansión, Marcio Aguiar, Director of NVIDIA Enterprise for Latin America, confirmed that Foxconn is handling the assembly of this AI server, which will support Stargate—OpenAI’s large-scale AI initiative in collaboration with the U.S. government.
Tariff Pressure on U.S. PC Vendors
While Tom’s Hardware indicates an optimistic outlook for NVIDIA’s AI server imports, the report also warns that PCs—particularly those built by small, specialized vendors or system integrators—may be among the hardest hit by the tariffs. As noted in the report, these U.S.-based builders are expected to raise prices by at least 20%, as virtually all consumer PC components are facing cost increases.
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(Photo credit: NVIDIA)
