YEREVAN (CoinChapter.com)
The Trump administration raised import tariffs on mining equipment from Indonesia (32%), Malaysia (24%), and Thailand (36%). These countries were key manufacturing hubs for major companies like Bitmain, MicroBT, and Canaan.
US Bitcoin mining has relied heavily on hardware from Southeast Asia. The companies moved production there to avoid the earlier 25% tariff on Chinese goods, which had been in place for years. The latest policy now affects these alternative production bases.
Jaran Mellerud, CEO of Hashlabs Mining, explained that these new Trump Bitcoin mining tariffs will raise the cost of machines imported to the US by at least 24%. He noted that the price surge will reduce demand from American buyers.
Bitcoin Mining Equipment Cost Expected to Rise
US Bitcoin mining will become more expensive compared to other countries. The affected manufacturers may end up with surplus stock. Mellerud said they might reduce prices globally to sell off this extra equipment. However, US buyers will still face higher import costs.
The Trump Bitcoin mining tariffs remove the earlier flexibility that manufacturers had. Until now, they avoided direct impact by relocating production. With that option gone, US Bitcoin mining becomes less cost-efficient.
A report from Hashlabs noted, “based on basic economic principles, a decrease in demand for an asset typically leads to a drop in its price.” But this drop will benefit other regions more than the US.
Trump Tariffs Effect Could Shrink US Hashrate Share
US Bitcoin mining currently makes up 36% of global Bitcoin hashrate, but this lead could shrink. The increase in Bitcoin mining equipment cost creates a less competitive environment. Miners in countries not targeted by Trump Bitcoin mining tariffs will likely find expansion cheaper and easier.
Mellerud said, “While the US will remain a major player, its dominance will fade, giving rise to a more globally distributed hashrate.” The global Bitcoin hashrate may shift away from the US as miners look for better returns elsewhere. Expansion in unaffected regions will reduce dependence on US mining operations.
The Trump tariffs effect may impact global expansion in the short term.
The report states that the global Bitcoin hashrate growth could drop over the next 1–2 years. This is due to reduced large-scale investments in the US Bitcoin mining sector.
Mellerud pointed out that a 36% reduction in growth should be seen as a worst-case limit. The actual figure might be smaller but will still affect the overall landscape.
Meanwhile, miners in other countries might increase operations to fill the gap. But capacity upgrades take time and funding. The short-term outcome will be slower growth.
Uncertainty Slows Investment in US Bitcoin Mining
Trump Bitcoin mining tariffs have caused unpredictability in investor planning. Large investments in US Bitcoin mining need long-term policy stability. Mellerud said, “In an industry as capital-intensive as bitcoin mining, policy stability is crucial—and right now, that’s in short supply.”
Even if the Trump administration removes the tariffs later, the current uncertainty remains a major concern. Investors may hesitate before committing to new US-based mining projects.
Policy shifts without warning make it difficult for mining companies to plan ahead. This damages investor trust and slows sector growth. On the same day as the Southeast Asia tariff hike, the Trump administration also imposed a 104% tariff on Chinese imports. The global cryptocurrency market reacted immediately.
Bitcoin dropped briefly below $75,000 after the announcement. The total crypto market capitalization also fell by 6.0% in one day.