Chinese Mining Giants Bitmain, Canaan and Ebang Hit Hard By Trump’s 27.6% Tariffs

Chinese Mining Giants Like Bitmain And Canaan Hit Hard By Trump’s Tariffs

The effects of a trade war standoff between the U.S. and China is already sending ripples across the crypto mining business. President Donald Trump’s new tariffs are the latest cause of worry for Chinese hardware makers.

Three of the planet’s largest producers of mining hardware are expected to be negatively impacted by the trade tariffs introduced by President Trump in late August. Bitmain, Canaan, and Ebang International will be forced to pay a whopping 27.6% on all units sold in the U.S. This is because the U.S. Trade Representative categorized mining hardware as “electrical machinery apparatus.”

Bitmain’s Tariff Troubles

Of the industry’s three largest companies, Beijing-based Bitmain is expected to be worst hit by the trade tariffs. This is because the firm’s overseas sales made up a massive 51 percent of its total revenue in the years 2016 and 2017. These figures come courtesy of Bitmain’s own initial public offering prospectus.

Tariffs on mining hardware are not the only headwind to have afflicted Bitmain this year. The implosion of cryptocurrency prices from record highs has significantly affected returns. The mining business is no longer as lucrative as it used to be, at the peak of the cryptocurrency boom early in the year.

Competition is another major headwind that promises to have a negative impact on Bitmain mining hardware empire. The fact that other miners have come up with efficient miners that consume far less electricity is another headwind. Demand for low electricity miners is on the rise in the wake of regulators around the world talking tough about cryptocurrency mining operations.


Canaan and Ebang International do not rely as heavily on exports with their own overseas sales contributing just 8.5% and 3.8% respectively during last year. However, the precise percentage of sales destined for the U.S. from any of the three companies is unclear.

One of Sanford C. Bernstein’s senior analysts, Mark Li, states that the U.S. trade tariffs against China will make the units created by Bitmain, Ebang International, and Canaan much less attractive for cryptocurrency miners operating in the U.S. This would allow products from other countries to erode the influence China currently exerts on the mining industry.

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