A wave of U.S. tariffs announced by President Donald Trump is threatening to upend the Asian supply chain critical to Bitcoin mining. The announcement, made Wednesday, set a baseline 10% tariff on all U.S. imports starting 5 April and harsher duties on select countries by April 9. Thailand and Malaysia—both key locations for crypto hardware production — face levies of 36% and 24%, respectively.
Lauren Lin, head of hardware at Luxor Technology, is racing to ship 5,600 mining machines from Thailand to the U.S. before tariffs take effect.
“Today we’re just scrambling,” Lin said. “Ideally we can charter a flight and get machines over — just trying to be as creative as possible.”
The tariff shock comes as major U.S. miners rely heavily on Southeast Asian supply chains. Bitmain Technologies, the Beijing-based hardware giant, shifted production to Indonesia, Malaysia, and Thailand following earlier Trump-era tariffs on Chinese electronics.
Bitmain is the largest manufacturer of Bitcoin mining machines globally. The company declined to comment on the latest measures.
Tariffs Sink Crypto Mining Stocks
Shares of U.S.-listed Bitcoin mining firms, including MARA Holdings and CleanSpark Inc., plunged in after-hours trading following the announcement. The financial strain is expected to reverberate across the industry.
“The latest tariffs will suppress continued growth in the sector,” said Taras Kulyk, CEO at Synteq Digital, a major broker of mining equipment.
Trump’s tariff plan targets roughly 60 countries with the largest trade imbalances with the U.S. China faces a 34% reciprocal tariff, potentially raising the average duty on Chinese products to 65%. According to Bloomberg Economics, the U.S. goods trade deficit with China reached $295 billion in 2024.
Thailand and Malaysia, now subject to steep duties, have also been among the top trade deficit partners with the U.S., registering $46 billion and $25 billion, respectively. Bitmain’s relocation to those regions now puts its operations directly in the crosshairs of U.S. trade policy.
Manufacturers Scramble to Adapt
The tariff escalation is accelerating manufacturers’ efforts to move production stateside. Bitmain announced a U.S. facility in December but withheld location details. Rival firm MicroBT is working with Riot Blockchain Inc. to increase U.S.-based production, Riot confirmed.
Luxor has also leaned into domestic supply. In December, it announced a $131 million agreement to purchase MicroBT’s WhatsMiner machines, highlighting plans for onshore assembly.
Still, tariffs on components could drive up capital expenditures. “If new import duties hit key components, we could see higher capex for North American mining operators,” said Wolfie Zhao, head of research at TheMinerMag.
According to Lin, machine costs account for most miners’ capital spending. The new tariffs could raise those costs by over 20%. “That means their ROI will be impacted very heavily,” she said.
Wider Economic Fallout
Trump’s new tariff regime lifts the average U.S. import tax rate to 22%, the highest since 1910, Fitch Ratings reported. The sudden rise from 2.5% in 2024 has prompted warnings of a global recession. “Asian economies will be hit harder than most,” said Marcel Thieliant of Capital Economics, citing their exposure to U.S. goods demand and higher average tariff rates.
Japan and South Korea, longtime U.S. allies, face reciprocal tariffs of 24% and 25%, respectively. Japan’s trade minister suggested that the levies may violate WTO rules but stopped short of detailing a response.
The broader consequences are already visible. U.S. crypto miners report shipment delays, and investors have turned to safe-haven assets amid market volatility. As trade tensions escalate, manufacturers face renewed pressure to localize production and manage surging costs.
