Trump tariffs may have a ripples of encryption: Here is the reason

It is expected that the recent definitions imposed by President Donald Trump on imports from Canada, China and Mexico will have varying effects on the coded currency mining sectors in these countries.

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The United States announced a 25 % tariff on Canadian and Mexican imports and a 10 % tariff for Chinese goods, as of February 1, 2025, according to what he said. Associated Press.

While these definitions primarily target traditional industries, the cryptocurrency sector may suffer from indirect effects.

Here’s the reason: Most mining devices are imported in the United States, making miners vulnerable to changes in commercial policies or definitions that affect these main suppliers.

The increase in the costs of imported mining devices can lead to an increase in operational expenses for workers in the United States who are primarily carrying their equipment from international suppliers. Bitmain and Canaan is located in Beijing and Hangzhou, China, respectively. They are the largest manufacturer for integrated mines (graphics processing units).

Taiwan Semiconductor MFG is produced. Co. On -based Hsinchu chips are semiconductors used in mining platforms, which are obtained by companies such as bitmain.

Microbt, located in Shenzhen, China, has an American chip that produces mining devices locally. Therefore, the company – which partnership With Riot Platforms Inc. The manufacture of miners in a facility in Pittsburgh, Pennsylvania-can avoid some customs tariff for importing Chinese Chinese products.

Canada And Mexico revenge

Canada was an important player in global bitcoin mining, as its share differs from the global retail rate over time. As of September 2023, Canada It is said About 7 % of the global bitcoin mining segmentation rate.

In response to the American definitions, Prime Minister Justin Trudeau said it “will not retreat in standing in Canada” and carried out a 25 % tariff on American goods. per BBC.

Mexican President Claudia Shinbum announced a retaliatory tariff on Saturday, February 1, in response to the Trump tariff by 25 % on all goods from Mexico.

Expressing the desire for dialogue on confrontation, sheinbauum I mentioned Mexico had no choice but to take revenge of its kind, as tensions between the two countries escalated into a commercial war.

“I have ordered my economy minister to implement the Plan B that we are working on, which includes tariff and unpleasant measures to defend the interests of Mexico,” Shinboma was published on X.com.

according to Horizon Grand View ResearchIt is expected that the coded currency mining devices in Mexico will reach expected revenues of $ 99.9 million by 2030.

In short, while the direct impact of the definitions on the coded currency mining in these countries may be limited, the broader economic effects and the increase in the costs of imported equipment may affect the sector.

The full range of these effects depends on the duration of the commercial conflict and whether or not. Until then, it appears that the value of bitcoin (BTCIt takes a blow. See the graph below.