Mining Hardware Crunch: Donald Trump’s Tariffs Force Miners to Accelerate Imports

Key Takeaways

• Donald Trump’s Liberation Day reciprocal tariffs threaten the US Bitcoin mining industry.
• China is the leading mining machine manufacturer but faces up to 60% tariffs on their goods.
• Mining machine makers might be forced to shift their base to the US due to new tariffs.

Donald Trump’s Liberation Day tariffs have not only tanked the stock and crypto markets but also disrupted the Bitcoin mining supply chains, especially those based in Asia.

Bitcoin miners rush to get their shipment before Trump tariffs take effect on April 5.

Trump’s Tariffs Disrupt the Bitcoin Mining Industry

According to a report published in Bloomberg, The United States-based Bitcoin mining industry might suffer critically due to the new tariffs announced by the Trump administration.

On April 2, Trump imposed new tariffs on 60 countries with the most significant trade imbalances with the US. The Liberation Day tariffs, which will take effect on April 5, impose a minimum 10% tax on all exporters to the U.S.

Meanwhile, Malaysia and Thailand will begin April 9 with more strict 36% and 24% tariffs, respectively.

The increased taxes could harm mining operations by causing supply chain delays, disruptions, and a shortage of mining equipment.

China is still the leading manufacturer of Bitcoin mining machines, with Beijing-based Bitmain Technologies being the largest manufacturer. The company has production lines in Indonesia, Malaysia and Thailand. 

The Beijing-based firm shifted its operations to Thailand and other neighboring countries after the Trump administration’s 2018 tariffs.

However, with new tariffs, Chinese goods will face a 34% reciprocal tariff rate that could raise the average levy on Chinese products to as high as 65%.

Bitcoin Mining Gear Manufacturer to Shift to US

In light of the ongoing trade wars, many Bitcoin mining machine manufacturers might have to shift base to the U.S. to avoid business loss. While the decision looks bearish in the short term, it might help in aiding Trump’s goal of making America the crypto capital.

Bitmain planned a US-based manufacturing unit in December last year, while MicroBT struck an agreement with Riot Blockchain Inc. that leverages the vendor’s US manufacturing sites.

If the trade war continues, more Asian manufacturers, especially from China, might follow suit in the near future. However, U.S.-based miners might shift their base outside the country to navigate the additional tariffs.

The U.S. has seen a significant boom in Bitcoin mining operations after China imposed a blanket ban in 2021. Texas became a preferred destination for most mining companies due to competitive electricity costs and pro-crypto state government.