Bitcoin miners keep on their toes by the US/Canada tariff flip-flops

Bitcoin miners adapt their business strategy as the trade war that continues between Canada and US makes the energy price and policy more uncertain.

US President Donald Trump has threatened to double the tariffs he imposes on aluminum and steel from 25% to 50%. leading Ontario’s government has reversed its plans to hike the costs of exporting power to the US.

Ontario Premier Doug Ford has promised that the government will increase surcharges. even “shut off the electricity completely,” Further provocation. He appears to be softer in his approach, for the moment. 

Some crypto companies are looking at policy changes to safeguard their growth. 

Bitcoin miners expect changes in energy markets

Ben Ganon was the CEO and founder of Canadian Bitcoin mining company Bitfarms. told Bloomberg stated on March 11, that if recent increases in energy prices were to go through, they would have little impact on his company’s operations. 

Bitfarms operates primarily in Quebec and British Columbia. Both provinces have significant hydroelectric power in comparison to their total energy mix. Ontario is a relatively small province in comparison. “not as robust of an energy market. And over the last several years, they’ve really taken a big push on cutting back on baseload capacity.”

Ganon stated that Bitfarms may appear to be in a good energy position for now, but the rates could change. “have implications for what policy and regulatory frameworks are going to look like in the future.”

The firm asked to be seen “greater access to electricity markets” As well as less regulations for setting up new businesses or power applications. 

Canadian politicians have been divided over energy policy. accusing the Liberal government — now led by Prime Minister Mark Carney — of harming The Canadian economy has adopted strategies for reducing emissions. 

Related: What Canada’s new Liberal PM Mark Carney means for crypto

Ganon said: “The opportunities that are present in the United States are also present in Canada. And I think that this will all resolve itself and end up in a much more deregulated and smooth and efficient market because for years it’s been tied up in regulatory red tape.”

What would be the benefit of tariffs for a Bitcoin miner?

Tariffs on goods such as steel, aluminum, and other industrial products — intended to encourage domestic production in the US— also impact Bitcoin miners, with some effects being unexpectedly beneficial.

Ganon said that while miners cannot control Bitcoin prices, they do have control over their energy costs. “One of the ways that we can do that is we can look for pockets of energy that are underutilized, that used to power heavy industry, which has been outsourced to other countries over the last 20 or 30 years.”

According to Ganon, Bitfarms has operations in Pennsylvania — a “Rust Belt” Outsourcing of American metal and steel industries has had a major impact on the state. The assets of his company could be very valuable if US manufacturing were to recover.

Ganon claimed that Bitcoin mining companies have invested heavily in energy infrastructure. “used to power aluminum smelters and steel refineries and all the stuff which was outsourced.”

“Now Bitcoin miners have these assets. And as the pendulum swings back to America, those assets are now in high demand.”

China tariffs squeeze Bitcoin mining hardware

Canadian crypto miners Bitfarms, for example, may not be concerned about Trump’s tariffs against China, but they have already started to hurt American miners who import equipment from China-based companies like Bitmain.

Bloomberg reported that the US blacklisted Bitmain’s AI affiliate Xiamen Sophgo Technologies in February 2025. According to reports, the delays were caused by the US blacklisting Bitmain AI affiliate Xiamen Sophgo Technologies. 

US miners have paid up to $50,000 in customs inspection fees on Bitmain-affiliated equipment, says Vishnu Mackenchery of Compass Mining, the director of global logistic and services. “completely cost-prohibitive,” According to Taras Kullyk, CEO of Synteq Digital.

Bitmain, a Chinese mining equipment producer, could establish operations elsewhere to escape US sanctions. Many mining hardware manufacturers moved from China to Malaysia, Indonesia, and Thailand during Trump’s first tenure, after he introduced a 25% tariff on certain consumer electronics.

Bitmain announced that it will launch its US production line by December 2024. “provide faster response times and more efficient services to the North American customers.” Bloomberg reported that Bloomberg did not know the precise location of the US-based line. 

Treasury Secretary Scott Bessent suggests that the US should bring BTC to shore

Trump’s policies on economic policy continue to have a mixed effect on the crypto market. The market is difficult to predict due to wild fluctuations in the trade policies and sudden reversals. The European Union, meanwhile, has pledged to implement counter-tariffs against the US. This will further threaten asset values. 

Marcin Kazmierczak told Cointelegraph he believes Bitcoin will fall to $75,000. This is a new low not seen in Bitcoin since November 2024. 

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