The ongoing trade war between the US and China negatively impacts the Bitcoin mining industry, with companies facing high tariffs and potential liabilities.
Current Situation in the Mining Industry
The US-led trade war has significant repercussions for the Bitcoin mining industry. As reported in The Miner Mag's latest update, mining firms are struggling under a complex tariff environment shaped by continuing US-China trade tensions.
Companies' Response to Tariffs
According to the report, the effective duty on China-origin mining machines now stands at 57.6%, while those from Indonesia, Malaysia, and Thailand face a duty of 21.6%. Companies CleanSpark and IREN have received invoices from Customs and Border Protection (CBP) regarding allegations that some of their equipment originated in China. CleanSpark has warned it could face up to $185 million in potential liabilities, while IREN is contesting a separate $100 million dispute.
Adaptation of Equipment Manufacturers
The harsh competitive environment pushes equipment manufacturers to adapt to changing conditions. Chinese manufacturers Bitmain, Canaan, and MicroBT have begun establishing facilities in the US to mitigate the effects of rising tariffs. Canaan’s strategy stands out as it has moved its headquarters to Singapore and announced US investments aimed at sidestepping trade barriers.
Overall, the trade war significantly affects the Bitcoin mining industry, creating new challenges and prompting companies to adapt and diversify their supply chains.
