Hashlabs Mining’s CEO Jaran Mellerud said that Trump’s massive tariffs on Bitcoin mining equipment could cause the US market to collapse. As a result, manufacturers would look for cheaper markets outside the US in order to dispose of their inventory.
“As machine prices rise in the U.S., they could paradoxically decrease in the rest of the world,” Mellerud said In a report dated April 8, “The demand for shipping machines to the U.S. is set to plummet, likely nearing zero.”
“Manufacturers will be left with excess stock originally intended for the US market. To offload this surplus, they’ll likely need to lower prices to attract buyers in other regions,” He added.
Mellerud suggested that the falling prices of mining rigs could encourage non-US miners to increase their output and capture a greater share of Bitcoin’s overall hashrate.
Source: Jaran Mellerud
US President Donald Trump announced his Administration’s plans “reciprocal tariffs” On April 2, nearly all countries will be affected. Some of the biggest crypto mining machines are made in certain countries hardest hit by the tariffs, Included in this are Thailand, Indonesia, and Malaysia. These countries saw tariffs as high as 36%, 24% and 32%, respectively.
Bitmain, MicroBT, and Canaan are among the crypto mining equipment manufacturers that have moved their operations to these countries in order to avoid a tariff of 25% imposed by Trump. imposed on China in 2018 During his previous administration.
Since 2017, the US has increased its tariffs on China and Indonesia. Source: Hashlabs Mining
Mellerud said that Trump’s tariffs mean that an initial mining rig costing $1,000 will be sold in the US for $1,240.
“Meanwhile, in Finland and most other countries, there are no tariffs, so the cost of a $1,000 machine remains unchanged.”
“In an industry as cost-sensitive as Bitcoin mining, a 22% price increase on machines can make operations financially unsustainable,” He also added.
No coming back from Trump’s tariffs — ‘Damage is done’
Mellerud sees a bright future reversal of the Trump administration’s tariffs Wouldn’t restore the confidence of US crypto miners.
“Even if these tariffs are rolled back within a few months, the damage is done — confidence in long-term planning has been shaken,” Mellerud said. “Few will feel comfortable making major investments when critical variables can change overnight.”
The US miner said that they felt more secure when Trump came back to the White House. They expected a stable regulatory climate.
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“But they are now experiencing the flip side of his unpredictable policy shifts,” Mellerud said.
US hashrate accounts for almost 40%. Mellerud stated that there was no reason for US miner to unplug the machines. He also does not expect to see the Bitcoin total hashrate from the US drop.
The path of expansion has now begun “steep and uncertain,” As a result of his words, the US may lose an important share hashrate.
Trump’s tariffs has shaken almost every market including crypto markets (and Bitcoin).BTCCoinGecko reports that the price of Bitcoin has dropped 4% in 24 hours, to $76,470. data shows.
Bitcoin is now 30% off the $108,786 all-time high it set on Jan. 20 — the same day that Trump re-entered the White House.
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Source: cointelegraph.com
