David Edwards
While some import duties are temporarily being suspended, U.S.-based Bitcoin mining companies are increasing their hardware purchases. However, industry experts warn that the present trade policy environment still puts them at a structural disadvantage.
The administration of President Donald Trump has put a halt on tariff increases until July 8, maintaining the base rate of 10% for the majority of trading partners, while imposing a significantly higher charge of 145% on imports from China. Industry executives contend that even with the reprieve, the remaining tariffs still sharply increase capital costs and obstruct long-term, strategic investments in the domestic mining industry.
“Although the 10% levy is lighter than previous tariffs, it still leaves U.S. miners at a clear disadvantage,” said Jaran Mellerud, CEO of mining consultancy Hashlabs, in an interview with Cointelegraph. “It won’t make U.S. mining unprofitable, but it does increase upfront costs and complicates future scalability.”
Mellerud predicts that the brief halt will cause a brief increase in mining rig imports as operators try to avoid a future round of tariff increases.
Ethan Vera, Chief Operating Officer of Luxor Technology, agrees, pointing out that onshore assembly contracts and U.S.-landed equipment prices have already risen in anticipation. “During this 90-day window, U.S. miners are rushing to purchase machines,” Vera stated.
Targeting nations essential to the production of mining rigs, the April 2 wave of tariff increases levied 36%, 32%, and 24% tariffs on imports from Thailand, Indonesia, and Malaysia, respectively. Some of the biggest suppliers of Bitcoin mining equipment in the world are based in these countries.
Mellerud had previously cautioned that these tariffs might reduce demand for mining rigs in the United States, forcing producers to shift inventories to foreign buyers at better prices. He bemoaned the unpredictable nature of the policy environment, even though the delayed tariffs offer short-term respite. “Miners need stable, consistent regulations, not ones that change every few years,” he stated.
Vera agreed, emphasizing that the sector’s domestic growth is being hampered by trade policy volatility. “This will certainly hurt growth. We’re reevaluating our international strategy as a result,” he noted.
Despite the difficulties, supporting domestic mining operations is linked to political goals. Trump has stated openly that the manufacture of Bitcoin will be based in the United States. In an effort to create the greatest mining operation in the world with strategic reserves, a number of Trump family members joined forces with Hut 8 last month to start “American Bitcoin.”
Vera warned, however, that “the crypto mining industry isn’t front and center for this administration,” indicating that digital asset infrastructure continues to be a low priority in overall trade policy.
