US President Donald Trump’s newly announced trade tariffs may exert additional strain on the Bitcoin mining sector both in the United States and worldwide, as suggested by an industry executive.
Despite the presence of Bitcoin (BTC) mining manufacturing companies like Auradine in the US, Kristian Csepcsar, the chief marketing officer at BTC mining technology provider Braiins, informed Cointelegraph that it remains “impossible to establish a complete supply chain, including materials, within the US.”
On April 2, Trump revealed significant tariffs, implementing a 10% tariff on exports to the US from all countries and enforcing “reciprocal” levies that target America’s primary trading partners.
The community is currently engaged in discussions regarding the potential ramifications of these tariffs on Bitcoin, with opinions divided between those who believe the impact is exaggerated and those who view it as a serious threat.
Tariffs intensify existing mining obstacles
Csepcsar remarked that the mining industry is already facing challenging circumstances, citing key indicators such as the BTC hashprice.
The hashprice — which gauges a miner’s daily revenue per unit of hash power utilized in mining BTC blocks — has been on a downward trajectory since 2022, hitting all-time lows of $50 for the first time in 2024.
Data from Bitbo indicates that the BTC hashprice was still lingering around historically low levels of $53 on March 30.
Bitcoin hashprice since late 2013. Source: Bitbo
“Hashprice is the primary metric miners track to evaluate their profitability. It reflects the daily earnings per terahash. It is a critical measure of profitability, and it is currently at unprecedented lows,” Csepcsar stated.
He noted that tariffs on mining equipment were already escalating under the Biden administration in 2024 and referenced comments from Summer Meng, the general manager at the Chinese crypto mining firm Bitmars.
Source: Summer Meng
“However, these regulations have become increasingly stringent under Trump,” Csepcsar remarked, referring to companies like Bitmain, the leading ASIC manufacturer based in China, which is now subjected to the new tariffs.
The latest measures from Trump include a 34% extra tariff layered on top of an existing 20% tariff for Chinese mining imports. In retaliation, China is reported to have instituted its own tariffs on April 4.
BTC mining firms face short-term losses
Csepcsar highlighted that advanced chips used for crypto mining are predominantly manufactured in countries such as Taiwan and South Korea, which have been subjected to new tariffs of 32% and 25%, respectively.
“It will take the US a decade to catch up with state-of-the-art chip production. Thus, companies, including those based in America, will incur short-term losses,” he asserted.
Source: jmhorp
Csepcsar also noted that some nations within the Commonwealth of Independent States, such as Russia and Kazakhstan, have been enhancing their mining activities and could potentially surpass the US in hashrate dominance.
Related: Bitcoin mining using coal energy declines 43% since 2011 — Report
“If the trade war persists, these regions with lower tariffs and more favorable mining conditions may experience significant growth,” Csepcsar cautioned.
As the newly imposed tariffs potentially hinder Bitcoin mining on a global scale and within the US, it may become increasingly challenging for Trump to uphold his pledge of establishing the US as the leading global mining hub.
Trump’s views on cryptocurrency have fluctuated over the years. With his administration adopting a more pro-crypto stance, the effects of these latest economic policies on his long-term digital asset strategy remain to be seen.
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