China increased the tariff on electrical goods to 2.6 percent; this will harm the crypto-miners in the U.S, the U.S reclassified Bitcoin mining devices from ‘data processing machines’ to ‘electrical machinery.’
The regulations if not changed will result in the USA being left behind in the crypto-industry. As for the miners, they tend to move to regions where mining BTC is efficient and cheap if the US is not providing it they will move towards other countries. Miners usually look for accommodations like cheap electricity, security, and access to mining machinery.
Under Trump administration, the tariffs on importing certain goods from China was 25%, and after the tariff increase by China this has reached up to 27.6%. Besides many others, BTC miners will be most affected by these tariffs as they require machinery to mine crypto-currency.
Experts in Crypto-Firms have stated that these new policies will result in a decline of mining rig purchase in the US that would, in turn, have a negative effect on its economy. Experts went on to say that this would, in turn, harm the manufacturers in China and its exports will decrease too.
This will harm the Crypto-trade across the globe as manufacturers’ main source of revenue comes from overseas sales and less mining units will result in less currency being mined.
As higher tariffs disrupt the economics of these mining firms, they may soon start moving their business away from the country if they haven’t already.