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Trump's Bitcoin Move Could Benefit Russia: Will They Become a New Hub? - Coin Bulletin
If U.S. President Donald Trump implements comprehensive tariffs on Bitcoin mining, Russia's share of global hash power could increase significantly.
Despite President Trump's support for Bitcoin and his goals to transform the U.S. into a Bitcoin (BTC) mining hub, the new tariffs he has implemented have begun to negatively impact the industry. The tariffs announced by the Trump administration between February and April, particularly the harsh measures against China, have led to significant cost increases in the sector's supply chain. This situation is causing Bitcoin mining companies to change their short-term plans and turn to alternative regions.
Ethan Vera, Operations Director of Bitcoin mining technology company Luxor, stated that machines in the industry are still largely supplied by China-based manufacturers and that devices coming from Asia face an additional cost of 12.6% due to current tariffs. Concerns that these rates could rise between 26.6% and 38.6% in July could negatively impact mining activities based in the US.
Will Russia be the new center of hash power?
It is expected that Russia will be the biggest winner if the tariffs are fully implemented. According to Vera, Russian mining companies will be able to provide hardware cheaper than China-based manufacturers, and the flow of Chinese capital to this country will also accelerate. This situation could halt the growth of the hash power in the US while allowing Russia to increase its share in mining.
Other players in the mining sector, BitFuFu and Bitdeer, are also aware of the long-term impact of tariffs, but they are adopting a more flexible attitude towards maintaining their operations in the short term. BitFuFu emphasizes that its facilities in the USA are operating at full capacity, while Bitdeer is preparing to launch mining devices labeled "Made in USA."
Luxor wants Bitcoin mining equipment to be included in the special customs exemptions granted to products such as computers and servers, and calls on the Trump administration to take steps in this direction to promote domestic production. All players in the sector are closely monitoring the final state of tariffs in the current uncertain environment.