Bitcoin (BTC) miners in the United States are bracing for potential challenges as escalating tensions between the US and China threaten to disrupt their operations.
On April 9, the White House revealed that a 125% import tax on Chinese products has been added to an existing 20% tariff previously established by President Trump, aimed at countering China’s contributions to the fentanyl crisis in the US. President Trump stated that tariffs on Chinese goods have seen an overall increase of 145% since he assumed office.
Rising Buildout Costs for Bitcoin Miners
The implications of these tariffs stretch beyond the broader economic landscape, particularly impacting Bitcoin miners. The United States relies significantly on mining hardware manufactured in Southeast Asia, particularly from major players such as Bitmain, MicroBT, and Canaan.
Recently implemented tariffs have also increased rates on imports from Thailand, Indonesia, and Malaysia—regions known for housing some of the largest mining rig manufacturers.
U.S. tariffs on Bitcoin mining machines just spiked across key manufacturing countries. China jumped from 25% to 54%. Indonesia, Malaysia, and Thailand went from 2% to over 20–30%. If U.S. demand drops, we could start seeing cheaper rigs show up abroad. pic.twitter.com/XQ2VlNTIij
— Esprezzo (@Esprezzoapp) April 9, 2025
The heightened costs are already beginning to impact US-based miners who import equipment from these affected regions.
Jaime McAvity, CEO of Cormint Data Systems, a US-focused mining operation, explained to Cryptonews that the company relies on components from China, including miners, transformers, and power supplies. “The tariffs will contribute to higher buildout costs,” McAvity noted, emphasizing that miners manufactured in China have now become economically unfeasible to import into the US.
He also warned that US companies with outstanding orders from China may be compelled to sell their equipment in the Chinese market. “This will create weaker demand and lower prices—potentially shifting investment opportunities to miners outside the US,” he added.
In a similar vein, Jill Ford, founder of Bitford Digital based in Texas, predicted that American Bitcoin miners would bear the brunt of the new tariffs. She indicated that miners are facing cost increases of 22–36% for equipment. “That kind of margin shift is significant—especially in an industry where efficiency is everything,” Ford stated, highlighting the challenges US miners will confront in competing with their international counterparts.
US miners face rising costs due to Trump’s tariffs on China, potentially shifting $BTC mining offshore. Tariffs could increase equipment costs by 22-36%, impacting expansion plans. pic.twitter.com/NXaYkBvyNR
— Alerts Via Web3 (@AlertsViaWeb3) April 9, 2025
Considering the Future of US Bitcoin Mining
Given the circumstances, Ford believes the US tariffs on Chinese goods could significantly hinder the growth and competitiveness of the American Bitcoin mining sector on a global scale.
As it stands, the American Bitcoin mining sector holds a critical role in the international market, contributing over 40% to the global hashrate—the collective computational power that secures the Bitcoin protocol—by the end of 2024. Two American mining pools, Foundry USA and MARA Pool, represented more than 38.5% of all blocks mined.
Foundry USA notably increased its hashrate from 157 exahashes per second (EH/s) at the start of 2024 to around 280 EH/s by the end of the year. However, as the bulk of mining hardware is produced in China, US miners are now facing a potential 36% increase in equipment costs, which, according to Ford, could compel many miners to reconsider their operations within the US territory. “It may soon become unfeasible to mine here, leading to a migration of operations to regions with more favorable costs and a healthier market,” she asserted.
Contrasting this outlook, McAvity mentioned that tariffs could spur domestic manufacturing sources, including efforts by Cormint to relocate production to the US. He views these tariffs primarily as a “temporary business disruption.”
While acknowledging that US production costs are higher than those in China, McAvity believes the overall long-term impact on prices might not be severe. Ford suggested that it may also be prudent for US Bitcoin miners to begin exploring options from local manufacturers like Auradine. “These alternatives are increasingly viable, with major players like Whatsminer already producing domestically and Bitmain planning to open a US warehouse this summer,” she noted.
Consequences for Bitcoin Hashrate
The escalating operational expenses in the US could deter miners from scaling up their operations, potentially giving an advantage to those in unaffected countries.
“The tariffs are likely to decelerate hashrate growth within the US, but I don’t foresee this having the same effect globally,” Ford explained. “In fact, we might observe a rise in hashrate elsewhere as mining operations transition to regions with lower costs.”
Despite this prospect, McAvity remarked that established miners with current hashrate installations might actually benefit from a slowdown in the growth of new hashrate.
Scott Offord, founder of Bitcoin Mining World, echoed this sentiment, suggesting that although the short-term impact may enhance profitability for existing miners, broader concerns about decentralization persist. “It is crucial for miners to keep an eye on global trends in hashrate distribution caused by these developments,” he remarked.
The Path Forward for US Bitcoin Miners
Alongside monitoring global hashrate trends, Ford emphasized that adaptability will be crucial for US miners in the evolving landscape.
“Miners who diversify their supply chains and remain agile will be best positioned to navigate these challenges,” she stated.
Offord further advised Bitcoin miners affected by tariffs to take a proactive approach. “Quickly secure existing inventory, investigate sourcing from lower-tariff countries, and establish partnerships with manufacturers that assemble rigs domestically. Additionally, ensure the longevity and efficiency of your current equipment through diligent maintenance and optimization,” he argued.
Miners well-equipped to adapt are likely to experience less disruption. Zach Bradford, CEO of CleanSpark, a US-based Bitcoin mining firm, expressed confidence in their preparedness for the tariffs, emphasizing that much of the company’s infrastructure is already located in the US. “While these tariffs may constrain competitors without our scale, we remain optimistic about maintaining our momentum and leading industry advancements,” Bradford stated.
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