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The impact of US tariffs on Bitcoin mining

The United States' reliance on Chinese manufacturers for Bitcoin mining equipment has made its mining industry particularly vulnerable to trade restrictions.

According to Pat Chang, Head of Research at WOO X, Chinese companies control between 70% and 80% of the global ASIC hardware market, meaning that imposing a 25% tariff on mining equipment would have immediate financial consequences.

This would increase the price of devices like the Antminer S19 by about $1,250 per unit, eroding profit margins, especially for large-scale mining operations that require frequent hardware upgrades to remain competitive.

In addition to the direct increase in cost, high tariffs could lead to supply shortages, especially if trade restrictions escalate to include a complete export ban.

While lower energy costs in certain areas of the United States may help miners absorb some of the additional financial burdens, the overall effect will still be a slowdown in industry growth. Equipment shortages and delays will be another outcome, with varying severity depending on the tariff rate.

Tariffs of 10% or less are likely to have minimal impact, but with tariffs of 25%, delays could extend from two to six months.