US Crypto Miners Rush to Buy Rigs Amid 90-Day Tariff Pause

US crypto miners are set to take advantage of the recent 90-day pause in tariffs imposed by the Trump administration, with many expected to rush to purchase mining rigs. However, industry executives warn that the baseline 10% tariff, which remains in effect, will still leave US miners at a disadvantage compared to their international counterparts. The pause, announced by President Donald Trump, halts the hefty reciprocal tariffs until July 8, but maintains a minimum 10% tariff on most countries, except for China, where the rate has been increased to 145%.

Jaran Mellerud, CEO of Hashlabs, highlighted that while the 10% tariff is significantly lower than the initial rates, it still poses a challenge for US miners. He noted that the tariffs, although not enough to make mining unprofitable, will increase capital expenditure and impact the long-term viability of new investments. Mellerud anticipates a short-term surge in machine imports as miners attempt to secure rigs before potential future tariff hikes.

Ethan Vera, chief operating officer of Luxor Technology, echoed Mellerud's sentiments, stating that US miners are already experiencing a price hike on crypto mining rigs. Vera mentioned that US-landed machines and onshore assembly contracts have seen price increases, further complicating the situation for domestic miners. The tariff instability, according to Mellerud, will hinder the growth of US Bitcoin mining, as manufacturers may look to sell their surplus inventory outside the US to avoid the higher tariffs.

The tariff changes, which include increased levies on Thailand, Indonesia, and Malaysia—home to three of the largest mining rig manufacturers—have added to the uncertainty faced by US Bitcoin mining firms. Mellerud emphasized the need for predictability and stable rules, rather than frequent policy changes, to support the growth of the industry. Vera noted that the policy shifts have forced Luxor to reconsider its expansion strategy, potentially looking into international markets for future growth.

Despite the challenges, the Trump administration's tariffs have not been a high priority for the crypto mining industry. The administration's focus on other sectors has left the industry to navigate the tariff landscape on its own. The tariffs have had a broader impact on various markets, including crypto markets, with Bitcoin experiencing fluctuations in response to the policy changes. However, the industry remains resilient, with some firms, such as Hut 8, partnering with members of the Trump family to lead Bitcoin mining ventures aimed at building the world's largest mining firm with strategic reserves.