No coming back from Trump’s tariffs — ‘Damage is done’Mellerud believes a future reversal of the Trump administration’s tariffs wouldn’t restore US crypto mining operators’ confidence.“Even if these tariffs are rolled back within a few months, the damage is done — confidence in long-term planning has been shaken,” Mellerud said.“Few will feel comfortable making major investments when critical variables can change overnight.”He said US miners felt reassured when Trump returned to the White House, expecting a more stable regulatory environment. Related: Bitcoin hashrate tops 1 Zetahash in historic first, trackers show“But they are now experiencing the flip side of his unpredictable policy shifts,” Mellerud said.
The Trump administration’s sweeping tariffs could collapse US demand for Bitcoin mining rigs, which would benefit mining operations outside the country as manufacturers will look outside the US to sell their surplus inventory for cheaper, says Hashlabs Mining CEO Jaran Mellerud.“As machine prices rise in the U.S., they could paradoxically decrease in the rest of the world,” Mellerud said in an April 8 report.“The demand for shipping machines to the U.S.is set to plummet, likely nearing zero.”“Manufacturers will be left with excess stock originally intended for the US market.
Source: Hashlabs MiningMellerud noted that Trump’s latest tariffs would mean a mining rig that initially costs $1,000 would be priced at $1,240 in the US.“Meanwhile, in Finland and most other countries, there are no tariffs, so the cost of a $1,000 machine remains unchanged.”“In an industry as cost-sensitive as Bitcoin mining, a 22% price increase on machines can make operations financially unsustainable,” he added.
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Author / Journalist: Cointelegraph by Brayden Lindrea
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