On Tuesday, Donald Trump signed an executive order extending for 90 days the suspension of tariffs on Chinese goods. The move preserves space for continued dialogue between Washington and Beijing.
Importantly for the cryptocurrency industry, the government has postponed tariff hikes on mining hardware imports. This has shielded related businesses from immediate cost increases.
Higher Tariffs on Mining Equipment Deferred
The suspension was set to expire at 12:01 am Eastern Time on Tuesday. The tariff rate on Chinese imports imposed by the United States would have jumped to as high as 145%. China’s tariffs on US goods would also have risen to 125%. After the extension, however, the US tariffs on China will remain at a base rate of 10%. There will be an additional 20% levy on fentanyl-related products. This results in a total rate of 30%.
Wendy Cutler, vice president of the Asia Society Policy Institute and a former senior U.S. trade official, described the extension as a constructive development. “Both sides are building on recent engagements to lay the groundwork for an agreement at the upcoming summit,” she said.
On July 31, President Trump signed an executive order implementing new reciprocal tariff rates with several countries. This included a 19% mutual tariff on mining equipment imports (ASICs) from Indonesia, Malaysia, and Thailand, which, combined with existing tariffs, raised the total rate to 21.6%.
The government set the tariff rate for mining hardware imported from China at a base 10%. They added a China-specific premium of 20%. This totals 57.6% effective rate.The latest extension delays the application of this elevated rate for at least another three months.
The planned tariff increase would have likely squeezed profit margins in crypto mining by driving up procurement costs. Industry insiders welcomed the extension as a reprieve amid ongoing trade tensions.
Bitcoin Price Shows Modest Reaction
The crypto market reaction has been muted. Bitcoin prices hovered around $11,850 at the time of reporting. The cryptocurrency briefly climbed above $12,000 on the previous day but softened thereafter, showing only minor fluctuations.
Market analysts suggest the extension could provide a short-term boost to crypto markets. However, they caution that longer-term uncertainties in US-China trade relations remain unresolved. Should tariffs rise again after the 90 days, the mining sector and broader digital asset market could face renewed pressure.
The post US Extends China Tariff Suspension by 90 Days: Mining Hardware Spared appeared first on BeInCrypto.
Source: https://beincrypto.com/us-extends-china-tariff-suspension-by-90-days-mining-hardware-spared/