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Trump Tariffs Hit US Bitcoin Mining Hard: 36% Hashrate Share at Risk
The recent imposition of tariffs on mining equipment from Indonesia, Malaysia, and Thailand has sent shockwaves throughout the global cryptocurrency community. The impact is expected to be severe for US-based bitcoin mining operations.
The new Trump administration policy raises import tariffs on these countries’ goods by a staggering 32%, 24%, and 36% respectively. This move will significantly increase the cost of importing essential mining equipment from Southeast Asia, where major players like Bitmain, MicroBT, and Canaan have relocated their production lines to avoid earlier Chinese tariffs.
According to Jaran Mellerud, CEO of Hashlabs Mining, the tariff hike is set to raise the price of imported machines by at least 24%. This increase in cost will lead to a reduction in demand from American buyers. As a result, the affected manufacturers may be forced to lower prices globally to sell off excess inventory. However, US-based miners will still face higher costs due to the removal of an earlier flexibility, which allowed them to avoid direct impact by relocating production.
As a consequence, the Trump Bitcoin mining tariffs will make US mining operations less competitive in comparison to other regions that are not targeted by these new policies. Miners from countries unaffected by these tariffs will likely find expansion cheaper and easier, as they can now import equipment at a lower cost.
The 36% reduction in global growth is expected to have far-reaching consequences for the US Bitcoin mining sector. The increase in costs will make it more difficult for large-scale investments in the industry, leading to reduced growth in the next one-to-two-year period.
In the short term, this development may lead to a slowdown in the overall growth of the global Bitcoin hashrate. Mellerud emphasized that this forecast is based on a worst-case scenario and actual numbers might be smaller but will still have an impact.
Source: https://coinchapter.com/trump-tariffs-hit-us-bitcoin-mining-hard-36-hashrate-share-at-risk/?utm_source=rss&utm_medium=rss&utm_campaign=trump-tariffs-hit-us-bitcoin-mining-hard-36-hashrate-share-at-risk
