US Tariffs on Asian Mining Rigs Slow Bitcoin Growth as Firms Eye Canada, Domestic Production

US tariffs on mining equipment from Southeast Asia, set to take effect on Aug. 7, are slowing Bitcoin growth as firms redirect flows to countries with more favorable trade environments, such as Canada. Tariffs on imports from China remain steeper, but a tariff pause extension is pending. Domestic production partnerships are being explored to offset costs, and some firms may benefit from rising prices of used machines.

The U.S. is experiencing a significant slowdown in Bitcoin mining growth due to new tariffs on mining equipment imports from Southeast Asia, set to take effect on August 7, 2025. Luxor Technology COO Ethan Vera stated that the U.S. is now one of the least competitive countries for importing Bitcoin mining equipment, with tariffs reaching 21.6% on ASICs from Indonesia, Malaysia, and Thailand [1].

These tariffs have led to a shift in machine flows to countries with more favorable import regimes, such as Canada, as U.S. operators explore overseas expansion. Luxor Technology is helping clients secure machines through onshore manufacturing partnerships, including a domestic production deal with MicroBT, a leading Chinese rig maker [1].

While the tariffs have reduced demand from U.S. clients, firms holding inventories of used miners in the U.S. may benefit from increased demand and price appreciation. Luxor expects U.S.-based used ASIC machines to trade up by 20% or more, which could be favorable for miners with existing fleets [1].

In contrast, Singapore-based public Bitcoin miner BitFuFu believes that U.S.-based miners can leverage the country's relatively low-cost and increasingly renewable energy sources to maintain competitive operating margins, despite the tariffs [1].

The U.S. tariffs on mining equipment from China remain unchanged for now, with a total import levy of 57.6%. The U.S. and China have agreed in principle to extend the tariff pause for a further 90 days, but final approval is still pending [1].

Southeast Asian countries, such as Thailand and Malaysia, have welcomed the reduction in tariff rates, which were significantly lower than initially threatened. The new tariffs have been described as leveling the playing field for the region's major economies [2].

Luxor Technology continues to advocate for an exemption similar to HTSUS 8471 on certain imports of computers, laptops, and servers for Bitcoin mining ASICs. The company believes this would help the domestic industry and improve the mining industry in the U.S. [1].

In summary, the new tariffs on Bitcoin mining equipment from Southeast Asia are slowing growth in the U.S. market, but domestic production partnerships and used machine price appreciation may offset some of the negative impacts. The tariff pause extension for China and the reduction in Southeast Asian tariffs provide some relief, but the long-term impact remains to be seen.

References:
[1] https://www.theblock.co/post/365793/trump-tariffs-bitcoin-miners
[2] https://www.reuters.com/world/asia-pacific/relief-southeast-asia-trumps-tariffs-level-playing-field-2025-08-01/