Trump Tariffs Threaten US Bitcoin Mining as China Hits with 34% Export Duty

Trump's new tariff policy could have a negative impact on the US Bitcoin mining industry as China, the world's largest producer of mining equipment, faces a high 34% export tariff, putting pressure on the profitability of US miners.

On April 2, Trump signed a sweeping order imposing retaliatory tariffs on all countries that have tariffs on U.S. goods. The base rate was set at 10%, with implementation scheduled to begin on April 5. Some countries faced much higher rates; Thailand and Malaysia, for example, received tariffs of 36% and 24%, respectively, starting on April 9.

The news sent shockwaves through financial markets, with the cryptocurrency sector being one of the first to react. Bitcoin (BTC) fell from $85,238 to $82,526 by the close of the day, a 3.18% drop. The broader cryptocurrency market followed suit, with the total cryptocurrency market cap declining by around 4% from April 2 to April 3.

U.S.-listed crypto stocks also saw significant losses. Coinbase Global fell 7.7% and MicroStrategy shares fell 5.6% on the day of the announcement.

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In addition to the drop in cryptocurrency and stock prices, the tariffs could cause major disruptions to the Bitcoin mining industry. China, which remains the leading manufacturer of Bitcoin mining equipment, now faces a 34% retaliatory tariff on its exports to the United States. This poses a major problem for American Bitcoin mining companies, especially given that America has become the world’s hub for cryptocurrency mining after China banned the practice entirely in 2021.

“The U.S. has become a preferred location in recent years, not only because of low energy costs but also because of legal, regulatory, and economic stability,” Gadi Glickberg, CEO of CodeStream, told Bloomberg. “The recent tariffs are unlikely to result in a mass exodus, but they could slow or alter future expansion plans as miners reassess the long-term economics of scaling operations in the U.S.”

With tariffs set to go into effect tomorrow, bitcoin mining equipment suppliers are racing to ship out their last shipments before higher duties are imposed. Taras Kulyk, CEO of mining equipment brokerage Synteq Digital, told Bloomberg that his company is working hard to expedite the delivery of thousands of units from Southeast Asia, including Indonesia, Malaysia, and Thailand.

Amid this volatility, mining hardware manufacturers are preparing for long-term changes to their operations. Bitmain Technologies, the world’s largest Bitcoin mining hardware maker, announced plans to open a factory in the U.S. in December. Another manufacturer, MicroBT, entered into a purchase agreement with Riot Blockchain, one of the largest U.S. miners, to leverage its U.S. manufacturing presence.

Investors are already starting to factor in the long-term implications of Trump's tariff decision: Shares of several U.S.-listed mining companies, including MARA Holdings and CleanSpark Inc., fell about 10% after the announcement.

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Source: cryptonews.net