Bitcoin miners are hoping to capitalise on the 90-day tariff pause to stock up on mining rigs as they prepare for uncertain and rainy days ahead.

Following Trump's flip-flop tariff policies, many of the industries in the U.S has been hit hard by the ongoing trade war, and one of the industries that was hit the hardest was the Bitcoin mining industry as the cost of mining is rapidly increasing.

When the White House announced a 125% retaliation tax on all Chinese imports, it has effectively caused the customs duties of Bitcoin mining machines to effectively spike from 25% to 54%.

With many other Southeast Asian countries-like Thailand, Malaysia, and Indonesia-who are also key producers seeing their tariffs increase from 2% to more than 20-30%, American Bitcoin are expecting to see the cost of their machines increase by 22-33%.

This is an economic shock for an already ultra-competitive sector, making U.S miners at a clear disadvantage when it comes to purchasing mining machines compared to competitors abroad.

Standing on the crossroad

Faced with this tariff pressure, Bitcoin mining players are reacting: they can either relocate or adapt to the difficult landscape.

While the U.S tariffs aren't enough to make mining in the U.S unprofitable, it definitely raises capital expenditure and will impact the long-term viability of new investments.

Facing the harsh economic conditions, many Bitcoin miners have shifted their operations abroad, to regions not subjected to these taxes.

The ultimate goal is to reduce the cost, preserve profitability and remain competitive in a global market where even the slightest percentage of efficiency can change everything.

While there are some companies who have decided to cancel their Chinese orders and try sourcing from other countries, other companies plan to produce machines domestically on American soil.

Hasklabs CEP Jaran Mellerud also revealed that there also could be a short-term spike in machine imports as miners rush to get ahead of potential future tariff hikes.

Luxor Technology's chief operating officer Ethan Vera also adds that U.S miners are looking to purchase machinese ahead of any further potential increase after the 90-day pause when the price is still at its lowest.

Tariff instability stunts mining growth

While the lower tariff now does offer some temporary relief for U.S miners, but the on-off tariff causes a instability ground that would hinder the growth of the Bitcoin mining. Ultimately, what miners would need is predictability and stable rules, not policy whiplash every few months.

If Trump really wants to fulfill his pledge of making Bitcoin to be "made in the U.S", then he would need to rethink his strategy and consider how his policy could potentially hurt the growth of Bitcoin mining in the country.

Late last month, several members of Trump's family have also partnered with Bitcoin mining firm Hut 8 to lead the Bitcoin mining venture "American Bitcoin". The venture aims to build the world's largest Bitcoin mining firm with strategic reserves.