New Trump Tariffs Hit Bitcoin Miners in the U.S.

The administration of Donald Trump has raised tariffs on the import of mining equipment from Southeast Asia. This could slow down the growth of the industry in the U.S., warned Luxor Technology's Chief Operating Officer Ethan Vera in a comment to The Block.

In April, the U.S. government implemented a 90-day pause on tariffs announced under the "Liberation Day" trade reform. On July 31, the White House established new duties: 19% on the import of ASIC miners from Indonesia, Malaysia, and Thailand. The total collection reached 21.6%.

Import tariffs from China remained at 57.6%, although it was previously proposed to set them at 145%. Negotiations for extending the temporary relief for 90 days are ongoing.

Before Trump's second term, the import of mining equipment from Malaysia, Thailand, and Indonesia was subject to a standard duty of 2.6%. Chinese ASICs were also subject to 2.6%, but with an additional 25%. Now, the US is one of the least attractive countries for importing bitcoin mining devices, noted Vera.

"We predict a slowdown in growth in the US, which will lead to the relocation of equipment to overseas markets with more favorable import tariffs," he added.

Most ASICs are developed outside the United States, with Antminer historically dominating the market — a product line from the Chinese company Bitmain Technologies. Therefore, an increase in import tariffs could seriously impact the profitability of the entire American industry and even the stock prices of public mining firms.

In May, Vera talked about the fact that in the case of tariffs, Russia would win. Local mining companies will be able to purchase equipment at a lower cost and attract Chinese capital. The expert also emphasized that investors from the USA will start to invest more actively in Canada, Northern Europe, Ethiopia, Brazil, Argentina, Chile, and Paraguay.

The attention of American miners is already shifting to Canada and other regions with low tariffs, said Vera. His company Luxor assists clients through local partnerships, including a deal with Chinese manufacturer MicroBT.

Long-term consequences

According to Vera, in the long term, the USA will launch its own production of ASIC miners. However, this may take years.

"Final assembly in the USA is possible right now, and many manufacturers are working on it. However, the raw materials mainly come from Asia, so the final cost of the equipment will still be higher. To have the equipment produced with American components will take at least several years," he noted.

Currently, Luxor is seeking an exemption for bitcoin mining equipment from tariff regulations.

"We consider this important, given the administration's campaign statements about supporting the domestic industry and developing mining in the USA," Vera added.

According to him, the company is already collaborating with several organizations that advocate for fair treatment of domestic miners.

Chinese mining equipment manufacturers are already relocating part of their production to the United States to avoid additional costs. Canaan and MicroBT have already done this.

Recall that in July, Bitmain also announced the opening of its first factory in the USA by the end of 2025.