Reading Time: 2 minutes
- The world is bracing for more tariffs from Donald Trump today, which could impact the price of Bitcoin
- Many don’t know that Trump levied tariffs in 2018 specific to Bitcoin mining
- The impact of these tariffs is still being felt today, exacerbated by the new round
Much has been made of the tariffs imposed by U.S. president Donald Trump since he re-took the Oval Office, with more expected today that may negatively impact stock and cryptocurrency markets. However, U.S. Bitcoin miners are still suffering from crypto mining tariffs imposed during Trump’s first term where he wanted to “go after” the cryptocurrency. But what were these tariffs and what impact did they have? Let’s find out.
Trump Takes a Stand Against China
In 2018, China was the king of the Bitcoin mining world while America was just starting to find its feet as a competitor. The Trump administration was in the middle of a trade war with China (sound familiar?), and it used the importation of Chinese-made equipment from the likes of Bitmain as another chip in the game.
At the time, cryptocurrency mining equipment was classified under “data processing machines,” which were not subject to import duties. However, in June 2018, the U.S. Trade Representative reclassified these devices as “electrical machinery apparatus,” resulting in a 2.6% tariff. Citing what he called unfair trade practices, Trump ordered an additional 25% tariff to be imposed in August 2018, bringing the total to 27.6%.
American Miners Felt the Pinch
Given the lack of quality alternatives, American miners were put in a difficult position: pay the tariff or buy inferior goods? Many paid the tariff, leading to a significant increase in the cost of importing the equipment, affecting both individual miners and larger operations. Higher equipment costs reduced profit margins and slowed expansion plans. Some companies considered relocating operations to countries with more favorable trade conditions.
Bitmain also faced substantial challenges due to the tariffs. With a significant portion of their revenue coming from overseas sales, primarily to the U.S., the increased tariffs threatened their profitability and global market share. This situation coincided with Bitmain’s plans to go public, adding pressure on the company.
No Let Up
Not only do the tariffs imposed in 2018 on Chinese cryptocurrency mining equipment remain in effect as of 2025, they are higher; in February, President Trump imposed an additional 10% tariff on all Chinese imports, including cryptocurrency mining hardware. This new tariff compounds the existing duties, further increasing operational costs for U.S. miners.
Industry analysts have expressed concern that these compounded tariffs could hinder the competitiveness of U.S. mining operations, given that Bitmain still rules the roost as far as mining machines go. A global chip shortage means that non-Chinese ASIC machine makers are struggling to compete, and until they do, Trump’s public claim to support Bitcoin mining in America remains hamstrung.
Read More
Mark Hunter