The Impact of the New Tariff Policy on the Encryption Mining Industry and Countermeasures

Recently, the U.S. government announced a brand new tariff policy, triggering a strong reaction from the market. This policy has not only impacted traditional financial markets but has also brought significant effects to the cryptocurrency industry, especially to the Mining industry.

Main Content of the New Tariff Policy

On April 2, 2025, the U.S. government signed two executive orders, deciding to implement "minimum baseline tariffs" and "reciprocal tariffs" policies on global trading partners. According to the published tariff schedule, the tariff rates for different countries and regions range from 10% to 50%. This policy aims to promote the development of U.S. manufacturing and improve the trade deficit situation.

The core of the new policy is the "reciprocal tariff" principle, but there are also some exceptions. For example, certain key minerals, energy products, semiconductors, and other goods may be exempt. In addition, if the value of American components in the goods is not less than 20%, they may also be exempt from reciprocal tariffs.

Impact on the encryption Mining Industry

As the largest cryptocurrency Mining market in the world, the United States accounts for nearly 50% of the global hash rate. However, the U.S. is not a major producer of mining machines and mainly relies on imports. The new tariff policy will directly affect the supply of raw materials, assembly, and sales of mining machines.

1. Rising costs: Tariffs will significantly increase the import prices of mining machines, raising the operational costs for American miners.

2. Industry Pressure: Mining machine manufacturers may face a shrinking market share in the United States and a decline in profitability.

3. Survival Dilemma for Miners: Against the backdrop of continuously declining cryptocurrency prices, rising mining machine costs may lead some miners to face a situation where their expenses exceed their income.

4. Industry security concerns: If a large number of miners are forced to shut down, it may affect the processing efficiency and security of the blockchain network.

Coping Strategies

In the face of the new tariff policy, traditional trade diversion strategies may be difficult to implement. However, the industry can still consider the following countermeasures:

1. Second-hand Mining Machine Market: American miners can consider purchasing mining machines in the domestic second-hand market to avoid paying high tariffs. However, they need to weigh the performance and stability of second-hand equipment.

2. Utilizing the "American Content" rule: Mining machine manufacturers can study how to increase the American-made components in their products to seek tariff exemptions. For example, collaborating with American semiconductor manufacturers to develop mining machine chips or procuring chip modules that are packaged and tested in the United States.

3. Technological Innovation: Increase R&D investment to improve Mining machine efficiency to offset some of the impact of rising costs.

4. Diversified Layout: Consider establishing mining farms in regions with lower energy costs and relatively friendly policies to diversify risk.

5. Business Model Innovation: Explore new business models such as computing power leasing and cloud Mining to reduce hardware dependence.

Although the new tariff policy poses severe challenges to the encryption Mining industry, it may also drive the industry towards a more efficient and sustainable direction. Companies need to actively respond, enhance their innovation capabilities and operational efficiency to remain competitive in the new market environment.