The Impact of the New U.S. Tariff Policy on Encryption Mining and Countermeasures

1. Overview of the New Tariff Policy and Background Analysis

On April 2, 2025, the President of the United States announced the implementation of a new tariff policy, establishing a "minimum baseline tariff" of 10% on global trade partners, with higher rates imposed on certain countries. The core of the new policy is "reciprocal tariffs," with rates ranging from 10% to 50%. This policy will take effect in two phases on April 5 and September.

The introduction of the new policy has multiple considerations:

1. Economic factors: Addressing the long-term trade deficit and revitalizing American manufacturing.

2. Political factors: Fulfill campaign promises and maintain the United States' position in the global economy.

3. Leadership style: Prefers short-term benefits and uses tariffs as a bargaining chip in international negotiations.

2. The Impact of Tariff Policies on Encryption Mining

2.1 direct impact

As the world's largest encryption mining market, the United States accounts for nearly 40% of the global computing power. The new tariff policy will directly impact the mining machine supply chain:

1. Raw material supply: Chips, materials, etc. primarily come from countries and regions subject to high tariffs.

2. Mining machine assembly: Mainly conducted in China and Southeast Asia, these regions also face high tariffs.

3. Mining machine manufacturers: Profitability in the US market will decline significantly.

4. American miners: Rising operating costs may face the risk of being unprofitable.

2.2 Policy Exemption and Uncertainty

Although there are some exemptions, the encryption mining machine manufacturing industry is difficult to apply.

1. The scope of semiconductor exemptions is limited, and mainstream mining machine chips are not included.

2. The "American content" rule is difficult to meet because most production processes occur overseas.

Many countries have stated that they will take retaliatory tariff measures, but some countries are also seeking to reduce tariffs on the U.S. The final implementation of the policy still remains uncertain.

3. Encryption Mining Response Strategies

3.1 Traditional strategies fail

1. Trade relocation: The new policy has a wide coverage, making it difficult to find suitable relocation locations.

2. Low reporting price: There is a significant compliance risk.

3. Transfer mining location: Although it can avoid tariffs, it faces other rising costs and policy uncertainties.

3.2 Possible countermeasures

1. Pay attention to the second-hand mining machine market: Domestic transactions do not require customs duties, but attention must be paid to performance and standardization issues.

2. Using the "American Component" rule:

   • Collaborate with American semiconductor manufacturers to develop mining machine chips.
   • Purchase chip modules tested and packaged locally in the United States.
   • Establish a technology holding company in the United States to hold core patents and authorize overseas production.

In the face of new tariff policies, encryption mining needs long-term planning and to seek compliant and sustainable development strategies. At the same time, closely monitor policy changes and adjust response measures in a timely manner.