US President Donald Trump's new tariffs on Bitcoin mining could negatively impact the industry, leading mining firms to seek alternatives in other regions.
The tariffs, particularly the harsh measures targeting China, have resulted in significant increases in the cost of Bitcoin mining equipment. Ethan Vera, COO of Luxor, stated that equipment coming from Asia is facing an additional cost of 12.6% due to the tariffs, and this figure is expected to rise to between 26.6% and 38.6% by July. This could negatively affect mining operations in the US.
If these tariffs are fully implemented, Russia is expected to see a substantial increase in its share of Bitcoin mining. Russian mining firms, benefiting from cheaper equipment sourced from Chinese manufacturers, could gain a significant foothold in the global hash power, potentially halting the growth of Bitcoin mining in the US while boosting Russia's presence in the sector.
Other companies in the sector are also feeling the impact of the tariffs but continue their operations in the short term. Luxor has called on the Trump administration to provide customs exemptions for Bitcoin mining equipment to support domestic production.
