Trump’s new tariff policy is poised to disrupt US Bitcoin mining as China, the world’s largest supplier of mining equipment, places emphasis on sudden 34% export charges and pressures American miners ROI.
On April 2, Trump signed a drastic executive order to impose mutual tariffs on all countries that have tariffs on US goods. The basic tariff rate was set at 10% and was scheduled to be implemented on April 5th. Some countries have faced tariffs of 36% and 24% since April 9th, respectively.
Source: Bloomberg
The announcement sent shockwaves through financial markets, and the crypto sector was the first to respond. Bitcoin (BTC) fell from $85,238 to $82,526 by the end of the day, dropping 3.18%. The broader crypto market followed suit, with the total market capitalization falling by about 4% between April 2nd and April 3rd.
The US-registered crypto stock was also hit hard. Coinbase Global slid 7.7%, while MicroStrategy stock fell 5.6% on the day of the announcement.
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Beyond crypto prices and stocks, tariffs are threatening to cause major disruption to Bitcoin mining. China, a leading manufacturer of Bitcoin mining hardware, is currently facing a 34% mutual tariff on exports to the US.
“In recent years, the US has emerged as a priority destination, not simply because of energy costs, but because it provided legal, regulatory and economic stability,” Codestream CEO Gadi Glikberg told Bloomberg. “Newly imposed tariffs are unlikely to cause large-scale escapes, but miners can delay or redirect future expansion plans to reevaluate the long-term cost-effectiveness of scaling operations within the United States.”
With tariffs set to take effect tomorrow, Bitcoin mining equipment suppliers are rushing to send their last cargo before the higher duties come into effect. Taras Kulyk, CEO of Mining Machine Brokerage Synteq Digital, told Bloomberg that his company is in a hurry to promote the delivery of thousands of mining units from Southeast Asia, including Indonesia, Malaysia and Thailand.
Amid this turbulence, mining hardware manufacturers are preparing for long-term changes in their operations. Bitmain Technologies, the world’s largest producer of Bitcoin mining equipment, announced plans to open a facility in the US in December.
Investors have already priced for the long-term impact of Trump’s tariff move, with stocks in several US-listed mining companies, including Mara Holdings and Cleanspark Inc., falling by about 10% after the announcement.
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