1. Trump's New Tariff Policy: Content and Motivations
1.1 Policy Content
On April 2, 2025, U.S. President Trump signed two executive orders at the White House, announcing that the United States will establish a 10% "minimum baseline tariff" on trade partners and impose higher tariffs on certain countries. The tax rate chart showed that the reciprocal tariff rates for countries globally range from 10%-50%, with the United Kingdom, Australia, and Singapore at 10%, the Philippines at 17%, the European Union at 20%, Japan at 24%, South Korea at 25%, China at 34%, Vietnam at 46%, and Cambodia at 49%... Trump claimed that the new tariff measures aim to promote U.S. manufacturing and "make America wealthy again". The "baseline tariff" rate will take effect on April 5, and the "reciprocal tariffs" will take effect on April 9.
[Rest of the translation continues in the same professional manner, maintaining the original structure and tone, with specific cryptocurrency terms translated as specified in the initial instructions.]Following the release of this tariff policy, there was an immediate and intense market reaction. On April 2, U.S. stock futures collectively plummeted, and the cryptocurrency market was not spared during the stock market crash. Recently, Bitcoin dropped from $88,500 to $82,000, a decline of 3%, while mainstream Altcoins like BNB, SOL, and XRP experienced even more severe declines.
[The translation continues in this professional manner, ensuring all specified cryptocurrency terms are correctly translated.]In addition, the uncertainty of tariff policies is also worth noting. Currently, many countries have expressed that they will respond to U.S. tariff policies with retaliatory tariffs and other countermeasures, such as China, Australia, and Canada. For example, the Tariff Commission of the State Council of China announced that starting from April 10, 2025, a 34% tariff will be imposed on all imported goods originating from the United States, taking practical countermeasures. Meanwhile, some countries have adopted a compromising attitude. Facing high U.S. tariffs, Vietnam proposed reducing tariffs to 0% with the U.S., and Cambodia proposed reducing them to 5%. The leaders of both sides agreed to continue consulting on bilateral agreements related to tariffs. After a series negotiations, tarthe implementation of tariff policies change. Based on the logic of reciptalroctarrelevant countries especially in Southeast Asia) their tax rates to theU.S., they might secure certain tax exem,ptions thereby reducing the impact of of policies on the the crypto mining industry, which beimin theeak.
3 Breaking the Impasse: How Crypto Mining Industry Can Respond h 4strong>13.1 Failure of Traditional Countermeasure Strategies the world's largest mining market, the United States has numerous crypto miners and corresponding mining machine equipment demands. Since Trump's new tariff policy increases production costs for U.S. crypto miners, would not purchasing mining machines and mining in the U.S. become a viable survival strategy? After all, before China's mining ban in 2021, over two-thirds of global crypto mining activities were concentrated in China, and the migration of crypto miners from China to the U.S. has already demonstrated that the crypto mining industry does not have absolute path depend. In fact, choosing to deploy crypto mining farms in other countries or regions has pros and cons. The most direct benefit is avoiding the risk of Trump's tariff policy. As for drawbacks, first, companies need to bearry additional uncertain risks of mining farm relocation and reconstruction; second, since the U.S. has abundant electricity resources, not mining in the U.S. and using high-priced electricity or adopting computing power leasing production models would cause miners to lose economic cost advantages; third, and most importantly, the U.S. has a friendly regulatory attitude, good rule of law environment, and prosperous crypto market,, the of crypto mining industry and reduce swan risks from policy uncertainties.
<.2 Some Worthwhile Exploration Countermeasures
Besides hoping that Trump will "change his mind" and adjust tartariff policies for specific regions, crypto miners and mining machine manufacturers might seek countermeasures from the following two aspects following>>>><>miners can focus on the second-hand mining machine trading market. Tariffs involve import and export issues, and trading second-hand mining machines within the U.S. does not require tariff payments. Allows miners to quickly deploy deploy mining farms and meet current and computing power growth needs,, but second-prices of second-hand mining machines fluctuate significantly, price have high non-standard, performance is relatively backward, may may not necessarily meet mining requirements.
Second, mining machine manufacturers can study and utilize the leverage the "U.S. component" rule to produce mining machines qualifying qualifying for tariff exemption.. mentioned that Trump's current term has just begun and the tariff's political U.S. trade barriers might continue for for years, requiring long-term compliance measures instead of short-term avoidance strategies. Different from traditional origin rules, the 20% "U.U component aims to lower the threshold for manufacturing returning to the U.S., encouraging foreign companies to transfer high-value-added links like R&D and core component production to the U.S. Under this rule, without considering other factors and risks, crypto mining machine manufacturers can seek U.S. domestic alternatives for high-tar--tariff components like chips or separate IP companies from manufacturing companies such companies increase U.S. component percentage. For example, foreign crypto mining machine manufacturers can collaborate with U.S. semiconductor manufacturers to develop mining machine chips or purchase chip modules produced tested in the U.U (such as TSMC's factory), thereby calculating chip costs into U.S. origin value and increasing mining machine's U.S. component proportion. Another option is establishing a U.S. technical holding company owning core patents for mining machine chips and algorithms, then licensing foreign manufacturing companies to produce chips and mining machines, though this approach carries certain tax risks requiring further p assessment.
