Russia Poised to Gain as Trump’s Bitcoin Mining Tariffs Shake the Industry
As the Trump administration pushes for stricter tariffs on imported Bitcoin mining equipment, analysts are warning that the unintended winner might be Russia. Despite Trump’s pro-crypto rhetoric, his tariff policy could seriously disrupt U.S.-based mining operations.
So why does Russia stand to gain the most?
Let’s unpack the situation.
What’s Going On With These Tariffs?
The new tariffs target a wide range of tech imports, including specialized crypto mining rigs. While most countries were granted a 90-day pause, China — the main source of mining hardware — wasn’t so lucky.
Here’s what’s at stake:
- Over 80 percent of Bitcoin mining rigs are made in China
- Tariffs could rise from 12.6 percent to as high as 38.6 percent
- U.S. firms like Riot have been forced to sell Bitcoin for operational funding
Ethan Vera, COO of Luxor Technologies, notes that these changes could heavily alter the hashpower landscape — with Russia becoming the prime beneficiary.
Why Russia Benefits
Russia offers cheap energy, minimal regulation, and political neutrality toward crypto. Combine that with Chinese capital flowing away from U.S. operations due to tariffs, and it’s easy to see why investors might pivot to countries like Russia.
In fact, many capital providers in the U.S. and Europe are already exploring:
- Canada
- Northern Europe
- Ethiopia
- Brazil
- Argentina
- Chile
- Paraguay
Can U.S. Manufacturing Catch Up?
Bitmain and other mining hardware makers are starting to explore U.S. production, but according to industry insiders, it could take years for full-scale onshore manufacturing.
Until then, U.S. miners will be stuck paying a premium for rigs — or sourcing them through less efficient, tariff-heavy channels.
What Happens Next?
Luxor and other mining firms are advocating for exemptions specific to mining equipment. They argue that Bitcoin ASICs should be treated similarly to laptops and servers, which enjoy certain tariff protections.
If the exemption doesn’t pass? Expect the hashpower to continue shifting abroad.
