Trump's new tariffs hit hard! American Bitcoin miners fear losing competitiveness, ASIC imports shifting overseas.

American Bitcoin miners are facing unprecedented cost pressures. With the Trump administration officially implementing high import tariffs on major ASIC mining rig producing countries in Southeast Asia on July 31, industry experts warn that the growth momentum of the U.S. mining industry may slow down, and the import of mining rigs is rapidly shifting towards low-tariff markets like Canada.

New Tariff Policy: Import Costs for Southeast Asia ASIC Soar

According to documents provided by Ethan Vera, COO of Luxor Technology, the United States has imposed a 19% reciprocal tariff on ASIC mining rigs from Indonesia, Malaysia, and Thailand starting August 7, in addition to the existing 2.6% standard import tax, bringing the total tax rate to 21.6%.

Although the tax rates have been adjusted down from earlier proposals, the costs have significantly increased compared to the low tax environment before Trump's second term.

The tariffs on China remain unchanged, with a baseline reciprocal tax rate of 10%, plus a 20% China-specific surcharge, totaling 57.6%, far lower than the previously reported peak of 145%. Both the U.S. and China have in principle agreed to extend the 90-day tariff suspension period, but final approval is still pending.

Mining Rig shifts overseas, US market competitiveness declines

Vera pointed out that high tariffs have led to a decline in demand from American customers, and mining rigs are flowing to countries like Canada that have more favorable import policies. He noted, "The 21.6% tariff in the United States makes it one of the weakest markets for mining rig imports in the world."

Luxor has reached a domestic production agreement with Chinese mining rig manufacturer MicroBT in an attempt to lower customer costs. However, Vera also anticipates that the prices of second-hand ASIC mining rigs in the United States will rise by more than 20%, benefiting miners with inventory.

Industry Perspectives Diverge: Cost Pressure vs Energy Advantage

Unlike Luxor's cautious approach, Leo Lu, CEO of Singapore Bitcoin miner BitFuFu, believes that even with rising initial equipment costs, American miners can still maintain profit margins thanks to cheap and increasingly renewable energy advantages.

BitFuFu has established local partnerships in Oklahoma, Texas, and Colorado to absorb tariff impacts and expand its business.

Long-term Impact: Domestic Manufacturing Still Needs Several Years

Vera stated that although some ASIC manufacturers have conducted final assembly in the United States, core components still rely on the Asian supply chain. Achieving large-scale manufacturing in the U.S. will take at least several years.

Luxor is actively promoting the inclusion of Bitcoin Mining Rigs under the same HTSUS 8471 tariff exemption as certain computers and servers, in order to alleviate the burden on American Miners.

Conclusion

Trump's new tariff policy, while aimed at promoting American manufacturing and protecting domestic industries, may weaken competitiveness and accelerate the outflow of the Bitcoin mining industry in the short term. In the coming months, the results of US-China tariff negotiations, progress in domestic manufacturing, and the attractiveness of low-tariff markets such as Canada will be key factors in determining the fate of American miners. For more analysis on cryptocurrency mining and policies, please follow the official Gate platform.