Bitcoin Mining Shakeup: Tariffs May Drive Mining Rigs Out of the U.S.
Wide-ranging tariffs imposed by the Trump administration may drastically lower demand for Bitcoin mining equipment in the US. This would help mining operations abroad, as manufacturers would turn outside to dump excess inventory at reduced prices, said Jaran Mellerud, CEO of Hashlabs Mining. According to Mellerud, declining mining rig prices may cause non-US mining companies to expand and capture a bigger portion of Bitcoin’s hash rate.
As machine prices rise in the U.S., they could paradoxically decrease in the rest of the world. The demand for shipping machines to the U.S. is set to plummet, likely nearing zero. Manufacturers will be left with excess stock originally intended for the US market. To offload this surplus, they’ll likely need to lower prices to attract buyers in other regions,
Mellerud
Bitcoin Mining Gear Prices Spike in U.S. as Trump Hits Asia With Heavy Tariffs
The reciprocal tariffs that US President Donald Trump’s government has imposed on almost all nations were announced on April 2. Some of the biggest manufacturers of cryptocurrency mining equipment are situated in the nations most affected by the tariffs, such as Malaysia, Indonesia, and Thailand, where their respective levies were 24%, 32%, and 36%.
During his previous administration, Bitmain, MicroBT, and Canaan, manufacturers of cryptocurrency mining rigs, relocated to several of these nations in order to avoid the 25% tax that Trump placed on China in 2018. According to Mellerud, mining gear that first cost $1,000 would now cost $1,240 in the US due to Trump’s most recent tariffs.
Meanwhile, in Finland and most other countries, there are no tariffs, so the cost of a $1,000 machine remains unchanged. In an industry as cost-sensitive as Bitcoin mining, a 22% price increase on machines can make operations financially unsustainable,
Mellerud
No Recovery in Sight for U.S. Miners, Even if Tariffs Are Rolled Back
According to Mellerud, the faith of US cryptocurrency mining operators would not be restored if the Trump administration‘s tariffs were to be reversed in the future. He claimed that when Trump took office again, US miners were relieved because they anticipated a more stable regulatory landscape.
Even if these tariffs are rolled back within a few months, the damage is done — confidence in long-term planning has been shaken. Few will feel comfortable making major investments when critical variables can change overnight. But they are now experiencing the flip side of his unpredictable policy shifts,
Mellerud
Nearly 40% of the network’s hash rate comes from the US. According to Mellerud, US miners have no motive to disconnect their equipment, and he does not anticipate a decline in the overall Bitcoin hash rate originating from the US. The US may lose a significant portion of the hash rate, he added, because the road to expansion is now steep and uncertain.
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