Trump's Tariffs Could Change the Global Balance of Bitcoin Mining
Date: 2025-04-10 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
The introduction of new trade duties by Donald Trump has raised concerns in the cryptocurrency industry, especially in the Bitcoin mining sector. According to experts, this measure is capable of not only increasing the costs of American miners, but also changing the balance of power in the global market.
Hashlabs Mining CEO Jaran Mellerud said that now the supply of mining equipment to the US will become at least 24% more expensive. The reason is that most of the equipment used by American companies is manufactured in China and Southeast Asian countries. Previously, manufacturers tried to bypass American tariffs by organizing assembly in Malaysia, Thailand and Singapore, but the new duties cover these regions as well - they are now 32% for Indonesia, 24% for Malaysia and 36% for Thailand.
Given these changes, equipment suppliers will face a drop in demand for their products from the US and will be forced to lower prices to attract buyers in other countries. According to Mellerud, while the exact level of price reduction is difficult to predict, basic economic principles suggest that a decrease in demand almost always leads to a decrease in the price of goods.
The problem is not only the rise in the cost of devices - the increase in tariffs can lead to a redistribution of the global bitcoin hashrate. Currently, the US provides about 36% of the total hashrate, but as equipment costs increase, their position may weaken. In the face of increasing costs, expanding operations in the US will become less profitable, and countries not subject to the new tariffs will have an opportunity to strengthen their positions.
Mellerud believes that in the long term, this will lead to a more even distribution of mining capacity between countries. However, he also emphasizes that the fall in the US share does not mean a complete decline in the industry in the country - the 36% decrease in global hashrate growth is only a theoretical maximum, and the real impact is likely to be less noticeable.
However, even if the tariffs are lifted, the suddenness of their introduction has already undermined investor confidence. Such unpredictable regulations make it difficult to plan long-term and raise the capital needed for large-scale mining projects.
According to CoinMarketCap, after the 104% tariff on Chinese goods went into effect, the market capitalization of digital assets fell by 3% to $2.44 trillion. The Bitcoin exchange rate was $77,200.
