Trump’s Tariffs Impact U.S. Bitcoin Mining Industry
Trump’s new tariff policy is set to shake up the U.S. Bitcoin mining sector.China, the world’s top supplier of mining equipment, now faces a 34% export tariff. This move could squeeze American miners’ returns.
On April 2, Trump signed an executive order imposing reciprocal tariffs on countries with tariffs on U.S. goods. the base rate is 10%, effective April 5. Thailand and Malaysia face 36% and 24% tariffs, respectively, starting April 9.
The announcement rattled financial markets. Bitcoin prices dropped from $85,238 to $82,526, a 3.18% fall. The total crypto market cap lost around 4% between April 2 and April 3. U.S.-listed crypto stocks also suffered.coinbase Global fell by 7.7%, and MicroStrategy’s stock declined by 5.6%.
These tariffs could disrupt the Bitcoin mining industry. China, the leading manufacturer of mining hardware, now faces higher costs to export to the U.S. This poses a challenge for U.S. miners, especially since America has become a global hub for crypto mining since China’s 2021 ban.
Gadi Glikberg,CEO of CodeStream,notes that while the tariffs won’t cause a mass exodus,they may slow future expansion plans.Mining equipment suppliers are rushing to send their last shipments before the higher duties take effect.
Manufacturers are preparing for long-term shifts. Bitmain Technologies plans to open a U.S. facility, and MicroBT has a purchase agreement with Riot Blockchain. Shares of U.S.-listed mining companies, like MARA Holdings and CleanSpark Inc., fell around 10% after the announcement.
