The USA has recently imposed a tariff on Bitcoin mining Application-Specific Integrated Circuits (ASICs) imported from five different Southeast Asian countries. These new tariffs, imposed at 21.6%, are aimed directly at ASICs coming from Indonesia, Malaysia, and Thailand. This decision will be significant impact Bitcoin miners. Revenue realization per device seems discouraging. National demand for these vertical hardware specialized devices seems to be already slowing down.
This latest move to raise tariffs on ASICs from these countries fits within a much larger realignment of U.S. trade policy. These tariffs would raise the cost of doing business for mining companies that need to import equipment to stay competitive.
The new tariff rate of 21.6% imposes an additional financial burden on companies importing ASICs. As a result, these powerful computers serve an indispensable purpose in solving complex mathematical problems to verify transactions to the blockchain ledger.
All this comes as local demand for Bitcoin mining ASICs is reportedly drying up, worsening the market outlook for miners even further. A variety of factors drive this slowdown, from market saturation to changes in mining technology that leave older models outdated.
The tariffs will hit Bitcoin miners significantly. These businesses rely on top notch and cost-effective hardware to stay competitive. The profiting companies’ margins would be completely eaten by the increasing cost of importing ASICs. Consequently, many miners will have to reduce their operations or find a different home with more favorable policies towards imports.
