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Trump tariffs could raise mining costs, making mining outside the U.S the only option for mining companies.
China has announced an 84% tariff on US goods in a move to reciprocate a 104% tariff imposed on its goods by the U.S on 8th of April. The country is a global factory for consumer electronics, including mining equipment supplied to mining firms worldwide.
As this trade war persists, mining companies in the United States have rushed to secure essential equipment before these tariffs become effective.
Additionally, mining companies have seen their share prices drop amid the ongoing global market crash, raising concerns about their profit margins. According to Seth on X, miner difficulty has hit a new high, making it even more expensive to mine BTC while prices are plummeting.
Why a trade war is a triple blow for the mining industry
Profit margins for the miners could be hit from three different angles if trade wars persist. These include falling BTC prices, rising costs of mining equipment, and dropping share prices.
As a result, mining firms outside the U.S. have higher profit margins as the Trump administration imposes further tariffs on China goods.
