New tariffs imposed by US President Donald Trump are having a significant impact on the country’s Bitcoin mining sector.
Ethan Vera, chief operating officer of US-based mining company Luxor Technology, said higher tariffs imposed by the White House on ASIC devices imported from Southeast Asia could slow the sector’s growth.
Following the end of a 90-day tariff pause announced by Trump in April to mark “Liberation Day,” new duties on ASICs from Indonesia, Malaysia, and Thailand went into effect on July 31. The duties, effective August 7, impose a combined rate of up to 21.6% on mining equipment imported from those countries. The 57.6% tariff on equipment from China remains unchanged for now.
According to Vera, the new tariffs make the US market less attractive for importing mining equipment:
“With tariffs at 21.6%, the US has become one of the least competitive countries to import equipment from. Our customers are starting to shift their purchases to countries with more favorable tariffs, such as Canada.”
Moreover, companies that already own used ASIC miners in the US are expected to be in a better position. With increased local demand for such equipment, prices are expected to rise by more than 20%.
Meanwhile, Leo Lu, CEO of Singapore-based bitcoin mining company BitFuFu, argues that despite tariff pressure, U.S. miners can remain competitive thanks to low electricity costs and access to renewable energy. BitFuFu continues to expand its operations, partnering with states like Oklahoma, Texas, and Colorado.
Ethan Vera believes that Trump’s tariffs will have an impact not only on the US, but also on the global distribution of computing power. Countries with lower import costs, such as Russia, could become new destinations for Chinese investment and mining equipment. In addition, countries such as Canada, Northern Europe, Ethiopia, Brazil, Argentina, Chile, and Paraguay are emerging as alternative hubs for investors.
*This is not investment advice.
Source: cryptonews.net
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