The recent tariff increases on China may compel the global Bitcoin mining sector to relocate beyond U.S. borders, as domestic miners contend with higher hardware expenses.
As Bitcoin (BTC) mining pushes further offshore, U.S. miners are grappling with escalating equipment costs. A recent report by the CEO of a mining firm emphasized the financial repercussions of tariffs on the American crypto mining sector. This analysis indicates that these tariffs could raise the costs of mining gear in the U.S. by at least 22% compared to other nations.
U.S. cryptocurrency miners heavily depend on imported hardware from Asian countries like China, Indonesia, Malaysia, and Thailand—all of which now face a minimum 24% tariff on all goods, including mining rigs.
Even in the best-case scenario—sourcing solely from Malaysia, which has the lowest tariff rate—equipment expenses would still rise by 24%. However, this situation is unrealistic, as U.S. imports typically originate from a diverse range of suppliers across the region. Furthermore, the figures presented do not yet reflect the recent 50% increase in tariffs on Chinese goods, which escalates the total tariff rate to 104%.
There is, however, a current stockpile of mining equipment in the U.S., which may help keep prices down initially. As these supplies diminish, miners will likely face a premium of between 22% and 36% for equipment compared to other countries. These estimates come from the CEO of a crypto mining company and are supported by the recent analysis.
U.S. Miners rushed to import rigs before tariff implementation
This study aligns with previous concerns voiced by industry experts. The CEO of another firm noted that while tariffs may not cause a mass exodus, they could impede the growth of the U.S. mining industry due to the impact of equipment costs on return on investments, making future expansion plans less likely.
“The newly imposed tariffs are unlikely to trigger a mass exodus. However, they may slow down or redirect future expansion plans, as miners reassess the long-term cost-efficiency of scaling operations within the U.S.,” stated the CEO of another company.
Additionally, the CEO of a mining equipment brokerage shared that his firm had been working to expedite deliveries ahead of the tariff hikes.