President Donald Trump announced on August 6 that he would impose tariffs as high as 100% on imported chips and semiconductors into the United States. He added that only companies producing these products in the United States could escape this tariff.
Trump told reporters in the Oval Office that the new tariffs would apply to all imported chip and semiconductor items, except for those from companies that have committed to manufacturing in the United States.
As reported earlier, the Bitcoin mining sector has been severely affected by Trump's tariffs on chips. Mining is the process of using high-tech hardware to validate and secure transactions on the blockchain network, the foundation that underpins the cryptocurrency industry.
While the United States is the leading country in cryptocurrency mining, Asian countries like China, Indonesia, Malaysia, and Thailand are the main producers of mining equipment that even US-based miners rely on.
This announcement immediately shocked the stocks of most cryptocurrency mining companies.
MARA Holdings (Nasdaq: MARA), a large Bitcoin mining company based in Florida, fell 0.13% after hours, down to $15.87 at the time of writing. Similarly, Riot Platforms (Nasdaq: RIOT) based in Colorado, dropped 0.69%, down to $11.58.
The Singapore-based mining company Bitdeer Technologies (Nasdaq: BTDR) decreased by 0.62% to $12.89, and CleanSpark, Inc. (Nasdaq: CLSK) based in Henderson, Nevada fell 0.18% to $10.98.
HIVE Digital Technologies (Nasdaq: HIVE) also dropped 0.94% to $2.10. Hut 8 (Nasdaq: HUT) declined 0.19% to $20.65.
The total cryptocurrency market capitalization reached $3.76 trillion at the time of writing.
