New tariffs implemented by US President Donald Trump are shaking the domestic Bitcoin mining industry.
Ethan Vera, chief operating officer of US-based mining services company Luxor Technology, warned that the White House heavier tariffs on ASIC devices imported from Southeast Asia could slow the sector’s growth.
After the expiration of the 90-day tariff suspension announced by Trump for the “liberation day” in April, the White House implemented new tariffs on ASIC devices in Indonesia, Malaysia and Thailand on July 31st. The tariffs that came into effect on August 7 impose a total duties of up to 21.6% on mining equipment imported from these countries. The 57.6% tariff on China is stable for now.
According to Vera, these new rates make the US an unattractive market for mining equipment.
“With a 21.6% tariff, the US is currently one of the least competitive countries for importing devices. Our customers are turning their equipment purchases to countries with more favorable tariffs, such as Canada.”
Furthermore, companies that already own ASIC stocks in the US are considered to be advantageous in this environment. Prices are expected to be valued at more than 20% as local demand for used equipment increases.
Meanwhile, Leo Lu, CEO of Singapore-based publicly traded Bitcoin mining company Bitfufu, claims that despite tariff pressures, US miners can remain competitive thanks to low energy costs and access to renewable resources. Bitfufu continues to expand its operations through partnerships in states such as Oklahoma, Texas and Colorado.
Ethan Bella believes Trump’s tariffs will affect not only the United States but also the global distribution of hash power. Countries with low import costs, such as Russia, could become Chinese capital and new destinations for mining. Furthermore, countries such as Canada, Northern Europe, Ethiopia, Brazil, Argentina, Chile and Paraguay have emerged as alternative hubs for investors.
*This is not investment advice.
