The administration of Donald Trump has increased tariffs on the import of mining equipment from Southeast Asia. This move could slow the industry’s growth in the US, warned Ethan Vera, COO of Luxor Technology, in a comment to The Block.
In April, the American government introduced a 90-day pause on tariffs announced under the “Liberation Day” trade reform. On July 31, the White House set new tariffs: 19% on the supply of ASIC miners from Indonesia, Malaysia, and Thailand. The total levy reached 21.6%.
Tariffs on imports from China remained at 57.6%, although it was previously proposed to set them at 145%. Negotiations to extend the temporary relief for another 90 days are ongoing.
Before Trump’s second term, the import of mining equipment from Malaysia, Thailand, and Indonesia was subject to a standard duty of 2.6%. Chinese ASICs were also subject to 2.6%, but with an additional 25%. Now the US is one of the least attractive countries for importing bitcoin mining devices, noted Vera.
“We anticipate a slowdown in growth in the US, which will lead to the relocation of equipment to overseas markets with more favorable import tariffs,” he added.
Most ASICs are developed outside the United States, with Antminer—a product line of the Chinese company Bitmain Technologies—historically dominating the market. Therefore, the increase in import duties could significantly affect the profitability of the entire American industry and even the stock prices of public mining firms.
In May, Vera stated that if tariffs were introduced, Russia would benefit. Local mining companies could purchase equipment more cheaply and attract Chinese capital. The expert also emphasized that US investors would begin to invest more actively in Canada, Northern Europe, Ethiopia, Brazil, Argentina, Chile, and Paraguay.
American miners are already shifting their focus to Canada and other regions with low tariffs, Vera stated. His company Luxor assists clients through local partnerships, including a deal with Chinese manufacturer MicroBT.
Long-term Consequences
According to Vera, in the long term, the US will launch its own production of ASIC miners. However, this could take years.
“Final assembly in the US is possible now, and many manufacturers are doing it. However, raw materials mainly come from Asia, so the final cost of equipment will still be higher. It will take at least several years for equipment to be produced using American components,” he noted.
Currently, Luxor is seeking to have bitcoin mining equipment exempted from the tariffs.
“We consider this important, given the administration’s pre-election statements about supporting the domestic industry and developing mining in the US,” added Vera.
According to him, the company is already collaborating with several organizations advocating for fair treatment of domestic miners.
Chinese mining equipment manufacturers are already moving part of their production to the United States to avoid additional costs. Canaan and MicroBT have already done this.
In July, Bitmain also announced plans to open its first plant in the US by the end of 2025.