The ongoing US-China trade war is significantly impacting the Bitcoin mining industry, with US firms facing increased costs and potential liabilities due to rising tariffs. Current tariff rates are set at 57.6% for Chinese mining machines and 21.6% for those from Indonesia, Malaysia, and Thailand. Two publicly traded mining companies, CleanSpark and IREN, are dealing with substantial claims from Customs and Border Protection; CleanSpark could incur liabilities of up to $185 million, while IREN is contesting a $100 million dispute. The industry's revenue is further strained with hash prices remaining low, and transaction fees dropping beneath 1% of block rewards. In response to these challenges, some Chinese manufacturers like Bitmain and Canaan are establishing facilities in the US to avoid tariffs. Meanwhile, the market dynamics indicate that rising equipment costs and regulatory pressures may dampen domestic demand for mining rigs, potentially benefiting international operators if conditions do not improve.

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