China’s Tariffs Could Disrupt Struggling US Crypto Mining Industry

• It costs U.S. miners approximately $81,650 to mine one Bitcoin in 2025.
• Cryptocurrency mining stocks declined by over 5% following the U.S.-China tariff announcements.
• U.S. efforts to upscale domestic oil production and rare earth mineral mining efforts could dampen the effects of the looming trade war.

China’s tariffs against the U.S. could end up squeezing American crypto-mining firms into a moment of crisis as operations struggling on thin profit margins may not be able to handle an additional tax.

Tariffs and Crypto Miners

Following Trump’s decision to impose a 10% tariff on Chinese products, the latter fired off a retaliatory its own strike, placing a 10% tariff on American crude oil, pickup trucks, and other U.S. manufactured products.

Furthermore, it imposed a 15% tariff on coal and liquefied natural gas (LNG).

Initially, news of a tariff war rocked investor confidence, causing the stock value of Western crypto and blockchain firms such as MicroStrategy (MSTR) and Coinbase (COIN) to drop by 5% on Monday morning.

Similarly, Bitcoin mining firms MARA (MARA), Riot Platforms (RIOT), and Hut 8 (HUT) also experienced a downturn in share value, losing upwards of 8%. This was further compounded by MARA’s Feb. 3, 2025 production report, which saw a 12% decline month-over-month in blocks won.

The firm notes that it will continue to optimize its mining fleet with “strategic enhancements” while also highlighting its reliance on the Chinese-made Antminer S21 Pro from Bitmain. Riot, Hut 8, and others also rely on Chinese-made machines.

At this point, Chinese-manufactured machines may now come with an extra cost, which could harm an industry that already operates on extremely thin margins. Delays and shortages in the supply chain could prove disruptive, as well as higher costs for these machines.

U.S. Pivot

There is also the factor of energy to consider. It’s no secret that crypto mining is highly energy intensive and the single biggest operational cost for any mining venture. An additional charge on energy may force small to mid-sized mining operations out of the competition.

That said, a gigantic U-turn on Joe Biden’s energy policies is underway as Trump signed the “Unleashing American Energy” executive order, which is a huge bid to upscale domestic oil mining efforts, which includes mining for rare earth minerals, which could bring some costs down for domestic miners.

Interestingly, Bitcoin mining firms may help to keep energy costs down. As reported by the West Kentucky Star, an audit from public utility provider Paducah Power revealed that three mining companies purchase 20% of their electricity output.

Though there were concerns that the energy-intensive mining farms would result in a price hike for residents, experts had predicted that the heightened revenues could be used to maintain low or even lower energy prices. In fact, an audit found that electricity rates declined by 3.18% for residents between January 2022 and January 2025.

Therefore, it could be a double-win for the U.S. if it successfully brings mining hardware producers to its shores, which is essentially the whole point of Trump’s tariffs.