How Will Donald Trump's Tariffs Affect Bitcoin? There's a Danger That's Not Being Talked About
New tariffs imposed by US President Donald Trump are shaking up the country's Bitcoin mining industry.
Ethan Vera, COO of US-based mining services company Luxor Technology, expressed concerns that increased tariffs imposed by the White House on ASIC devices imported from Southeast Asia could slow down the development of the sector.
Following the end of a 90-day tariff-free period announced by Trump in April to mark “Liberation Day,” the White House imposed new duties on ASIC devices from Indonesia, Malaysia, and Thailand, effective July 31. The duties, which took effect August 7, bring the total rate to 21.6% on mining devices imported from those countries. The 57.6% tariff on China remains in place.
According to Vera, the new tariffs make the US a less attractive market for mining equipment:
“With tariffs of 21.6%, the US has become one of the least competitive countries for equipment imports. Our customers are shifting their purchases to countries with more favorable conditions, such as Canada.”
Moreover, companies that already own used ASIC miners in the US may be in a better position in this situation. With local demand for used equipment growing, prices are expected to increase by more than 20%.
Meanwhile, Leo Lu, CEO of Singapore-based public mining company BitFuFu, argues that despite tariff pressure, U.S. miners can remain competitive thanks to low energy costs and access to renewable resources. BitFuFu continues to expand its operations, partnering with states like Oklahoma, Texas, and Colorado.
Ethan Vera believes that Trump’s tariffs will not only affect the US, but also the global distribution of computing power. Countries with lower import costs, such as Russia, could become new destinations for Chinese investment and mining equipment. In addition, countries such as Canada, Northern Europe, Ethiopia, Brazil, Argentina, Chile, and Paraguay are emerging as alternative hubs for investors.
*This is not investment advice.
Source: cryptonews.net
