Bitcoin: How Trump's Trade War Is Costing American Miners

American Bitcoin miners are facing a new setback. The Trump administration has imposed heavy tariffs on mining equipment coming from Asia. As a result, costs are skyrocketing, undermining the competitiveness of local players in an already strained sector due to profitability and global competition.

Trump strikes hard: tariffs explode

At the moment when China imposes an 84% tax on American products on April 9, the White House retaliates with a 125% surcharge on Chinese imports. This adds to the already existing 20%, bringing the total increase to 145% for the Middle Kingdom since Trump’s return. Bitcoin mining machines are particularly targeted, with customs duties rising from 25% to 54%.

Moreover, countries like Thailand, Malaysia, and Indonesia, also key producers, are seeing their tariffs rise from 2% to more than 20-30%. As a result, American Bitcoin miners are facing a price increase of 22 to 36% on the purchase price of their machines. An economic shock for an already ultra-competitive sector.

American Bitcoin miners adapt or relocate

Faced with this tariff pressure, Bitcoin mining players are reacting. Jill Ford, founder of Bitford Digital, emphasizes that these increases are making mining in the United States less and less profitable. Some companies are canceling their Chinese orders and trying to resell them locally in Asia. Others, like Cormint Data Systems, are accelerating the relocation of their supply chain.

Whatsminer, for its part, plans to produce machines on American soil, and Bitmain will open a warehouse in the United States this summer. Meanwhile, Bitcoin miners are considering moving their operations abroad, to regions not subject to these taxes. The goal: to reduce costs, preserve profitability, and remain competitive in a global market where even the slightest percentage of efficiency can change everything.

What impact on bitcoin?

Despite these turbulences, Bitcoin shows no signs of immediate weakness. The potential decline in American hashrate could slow the expansion of global computing power, but not bring it down. According to Scott Offord, this could even temporarily improve the profitability of existing miners. However, a migration of hashrate out of the United States could pose long-term risks to the decentralization of the network.

The future of Bitcoin mining in the United States is therefore undergoing significant changes. Between soaring costs, forced relocation, and strategic relocations, miners must reinvent themselves to survive. The BTC remains resilient. However, the evolution of the global hashrate distribution will need to be closely monitored in the coming months.