Trade War Puts Pressure on US Bitcoin Mining Industry
The ongoing US-China trade war is reshaping the Bitcoin mining industry, with tariffs on mining equipment rising sharply. According to The Miner Mag’s Bitcoin Mining Update, miners are now dealing with complex tariff environments and possible disputes with Customs and Border Protection (CBP) that could lead to massive liabilities for American companies.
The report highlights that tariff rates now stand at 57.6% for China-origin mining machines and 21.6% for equipment sourced from Indonesia, Malaysia, and Thailand. These hikes are part of the White House’s ongoing adjustments to trade policy.
CleanSpark and IREN Under Scrutiny
Two major US-based mining firms, CleanSpark and IREN, are already feeling the impact. CleanSpark disclosed potential liabilities of up to $185 million, while IREN faces a $100 million dispute with CBP over allegations that some of their equipment originated in China.
This growing financial pressure comes at a time when mining revenues are already under stress, with Bitcoin’s network hash price stuck below $60 per petahash per second and transaction fees dropping below 1% of block rewards.
Despite these challenges, leading mining companies are adapting. American Bitcoin, backed by members of President Donald Trump’s family, recently exercised an option to acquire 16,000 rigs from Bitmain, structured to avoid potential tariff impacts.
Chinese mining hardware giants like Bitmain, Canaan, and MicroBT are also making strategic moves to mitigate the effects of US tariffs. Canaan, for example, has relocated its headquarters to Singapore and announced US-based investments to bypass trade restrictions.
What’s Next for Bitcoin Miners?
Analysts warn that tariff escalation could dampen US demand for mining rigs, potentially shifting the advantage to overseas operators. The future of domestic Bitcoin mining may depend on how US tariff policy evolves and whether firms can successfully diversify their supply chains.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.