US President Trump’s planned tariff policy, set to be announced today under what he calls “Liberation Day,” could significantly disrupt the American crypto mining industry.
While the details of the tariffs remain unclear, experts are concerned about the potential impact, especially on the crucial supply of hardware used in Bitcoin mining.
How Tariffs Could Escalate Mining Costs
Trump’s new tariffs on foreign imports, particularly from China, could increase operational costs for the US crypto mining industry according to Matt Pearl, director of the Strategic Technologies Program at the Center for Strategic and International Studies (CSIS), and Pat Zhang, head of research at crypto exchange WOO X. A recent 10% tariff on Chinese goods added to the already existing 10% tariff, and Trump has even proposed up to 60% border taxes on Chinese products. If these tariffs intensify under his “Liberation Day” initiative, the American mining industry could face increased equipment prices and operational disruptions.
The Importance of ASIC Hardware in Mining
A key area of concern for crypto miners is the importation of ASIC (Application-Specific Integrated Circuit) hardware, which is critical for the mining of Bitcoin and other proof-of-work cryptocurrencies. These specialized chips are far superior to general-purpose CPUs or GPUs when it comes to mining efficiency, making them indispensable for large-scale mining operations.
The US crypto mining industry heavily relies on these imported ASICs, many of which are manufactured in China. Given China’s advanced semiconductor manufacturing capabilities, any additional tariffs on Chinese goods would directly affect the availability and cost of these crucial components.
US Reliance on Chinese Hardware
In 2023, the US became the largest importer of electrical machinery and electronics, with a significant portion of these imports coming from China. According to data from the Observatory of Economic Complexity (OEC), in 2023, the US imported $119 billion worth of electrical machinery from China, with ASIC miners comprising a large chunk of that total.
In January 2025 alone, the US imported $41.3 billion worth of electrical machinery, with China being the largest supplier. This heavy reliance on Chinese manufacturers could exacerbate challenges for the US mining industry if additional tariffs or export restrictions are imposed.
Potential Impact of Tariffs on US Mining Operations
The US mining industry’s dependence on China for ASIC hardware means that further tariffs could drastically increase mining costs. As Pat Zhang, head of research at WOO X, explains, a 25% tariff on Chinese mining equipment would add $1,250 to the cost of each unit, such as the Antminer S19, which could severely impact large-scale mining operations. In extreme cases, export controls or outright bans could lead to supply shortages, slowing the industry’s growth.
Looking Back at Past Tariff Effects
While it remains to be seen how the new tariffs will affect the industry, historical data from Trump’s first term offers insights into the possible consequences. Previous tariffs have already impacted the prices of imported mining equipment, and further escalation could continue to erode profit margins for miners, particularly those dependent on China’s manufacturing capabilities.
As the crypto mining industry navigates this uncertain landscape, the potential for increased costs and supply chain disruptions looms large, leaving miners to adapt to the changing political and economic climate.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/trumpss-liberation-day-good-or-bad-for-crypto-mining/