Bitcoin Mining Faces Tariff Struggles as Trump Family Enters the Industry

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04.04.2025 141 times read 5 Comments

Bitcoin Mining Industry Faces Challenges Amid Trump's Tariff Policies

The Bitcoin mining industry is currently facing significant challenges due to the tariff policies introduced by former US President Donald Trump. According to BTC Echo, major mining companies such as Marathon, Riot, and Core Scientific have seen their stock values plummet. Marathon's shares dropped by 11.23%, Riot's by 9%, and Core Scientific's by a staggering 15%. The combined market capitalization of the largest Bitcoin mining companies now stands at $20.3 billion.

The primary issue stems from the newly imposed tariffs, which include a 10% base tariff on all imports to the US and an additional 34% tariff on Chinese goods. This is particularly problematic for the mining industry, as a significant portion of mining equipment is manufactured in China. Wolfie Zhao, a Bitcoin mining expert, highlighted that these tariffs could lead to increased operational costs for US-based miners, potentially reducing the profitability of mining operations in the country.

“Operatively, the tariffs will certainly impact mining companies that heavily rely on Chinese ASIC manufacturers for their future growth,” said Wolfie Zhao.

Additionally, the tariffs on products from other countries, such as Thailand, have also increased, with a 36% tariff now applied. This could further strain the supply chain and increase costs for mining companies. The situation raises concerns about the sustainability of the US mining industry, especially given Trump's earlier statements about wanting all remaining Bitcoin to be mined within the United States.

Company Stock Drop (%)
Marathon 11.23%
Riot 9%
Core Scientific 15%

Key Takeaway: The US Bitcoin mining industry is under pressure due to increased tariffs on imported mining equipment, leading to significant stock value declines for major companies.

Global Impact of Tariffs on Bitcoin Mining

IT Boltwise reports that the global Bitcoin mining industry is also feeling the effects of Trump's tariff policies. Kristian Csepcsar, Chief Marketing Officer at Braiins, noted that the mining sector was already struggling due to declining BTC hash prices, which reached an all-time low of $50 in 2024. The hash price, a critical profitability indicator, measures the daily revenue a miner earns per unit of hash power used to mine Bitcoin blocks.

Under the new tariff regime, Chinese mining imports face a total tariff of 54%, while products from Taiwan and South Korea are subject to tariffs of 32% and 25%, respectively. Csepcsar warned that it could take a decade for the US to catch up in producing advanced chips for mining, leaving American companies at a disadvantage. Meanwhile, countries like Russia and Kazakhstan are ramping up their mining efforts, potentially surpassing the US in hash rate dominance.

“If the trade war continues, regions with lower tariffs and more favorable mining conditions could experience a significant boom,” Csepcsar stated.

China has also retaliated with its own tariffs, further complicating the global trade landscape for mining equipment. The situation underscores the challenges of maintaining a competitive edge in the Bitcoin mining industry amid geopolitical tensions.

Key Takeaway: The global Bitcoin mining industry is grappling with increased tariffs, declining profitability, and growing competition from countries with more favorable conditions.

Trump Family Ventures into Bitcoin Mining

According to IT Boltwise, the Trump family has expanded its business interests into the cryptocurrency sector by launching a new Bitcoin mining venture. Eric Trump and Donald Trump Jr. have partnered with Hut 8, a leading Bitcoin mining company, to establish "American Bitcoin." Hut 8 holds an 80% stake in the new company, while the remaining 20% is owned by American Data Centers, a Trump-backed entity.

The venture aims to capitalize on the lucrative opportunities in Bitcoin mining, which requires substantial energy resources to process transactions. Donald Trump Jr. emphasized that mining under favorable economic conditions presents a greater opportunity than merely purchasing Bitcoin. The company plans to build a significant Bitcoin reserve and achieve a hash rate of over 50 EH/s with a fleet efficiency of less than 15 J/TH.

Eric Trump, serving as Chief Strategy Officer, highlighted the strategic partnership with Hut 8 as a foundation for future growth. The company also plans to go public in the near future, further solidifying its position in the industry.

Key Takeaway: The Trump family has entered the Bitcoin mining industry with ambitious plans to establish a leading position through strategic partnerships and innovative business models.

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I dont get how the Trumps think they can run a mining biz when tariffs makin it to expensive 2 even get the equiptment from china like wat??
Honestly this gotta be like super bad timing?? Like if BTC hashing is alrdy at at low how r they gonna pay off all tht equipt wth the tariffs on top lmaoo?? Plus like Hut 8 shuld watch out b/c trump brands kinda flop sometimes (just sayin).
Okay, so here's the thing—while everyone's (rightfully) focusing on the tariffs and how they’re wrecking the mining industry, I feel like no one's talking about this absurd contradiction in Trump’s strategy here. On the one hand, his policies are literally making it insanely expensive to import the equipment needed for mining—essentially kneecapping the industry in the U.S.—and on the other hand, the guy’s family is trying to make a massive play by starting their own mining business?! Like... how does this even make sense? Are they planning to just eat the higher costs and rely on branding and buzz to pull them through, or do they have some secret workaround for avoiding these tariffs that the rest of the industry doesn’t?

Also, isn’t Hut 8 a Canadian company? I might be wrong, but if that’s true, doesn’t it just underline how the Trumps might not even be *that* invested in growing an AMERICAN mining industry? It feels sort of performative, like they’re slapping their name on a project with conveniently Canadian partners to claim they're “all in” on Bitcoin while avoiding the direct consequences of Trump’s tariffs. I don’t know—it just smells off to me.

Plus, this whole "we want all Bitcoin mined in the U.S." thing... What? How? The equipment is mostly made in China and other regions, and catching up on production in America could take a decade, as was pointed out in the article. So what, are they just hoping the public won’t notice these pie-in-the-sky goals aren't even remotely realistic? Feels like a lot of politics driving headlines more than sound business thinking, but hey, maybe that’s just me. What do you guys think?
Honestly, I’m just baffled they think this is the right time to jump into mining when the whole industry is struggling so hard. Those tariffs are practically making it impossible to even get the equipment at a reasonable cost, and I’m not sure how the Trump family expects to "lead" with these conditions. The timing feels off, especially with other countries like Kazakhstan gaining more traction.
Honestly, I don’t see how adding more big players like the Trumps will solve any of these tariff issues. If established companies are already taking such huge losses, how is "American Bitcoin" going to make it work under the same restrictions? Feels more like a PR move than an actual plan, especially with how energy-intensive mining is on top of all this.