Insights from Vishnu Mackenchery, Director of Global Logistics and Services at Compass Mining

Recent changes in U.S. tariff policies have sent ripples through the global tech and manufacturing industries—including Bitcoin mining. While the tariffs were initially intended to target China, reciprocal tariffs now affect several key countries that serve as major manufacturing hubs for Bitcoin mining hardware.

Tariffs Expand Beyond China

"The tariffs were initially going to only affect China," said Vishnu Mackenchery, Director of Global Logistics and Services at Compass Mining. "But when the reciprocal tariffs were released, they included countries where our partners have major manufacturing plants: Indonesia, Malaysia, Thailand, Vietnam, and of course, China."

Before these changes, there were either no tariffs or a minimal duty of 2.6% on imported goods from these countries. Now, under the new structure, tariffs were set to spike drastically:

  • Malaysia: 24%
  • Thailand: 36%
  • Vietnam: 46%

These hikes were initially scheduled to go into effect on April 9th, 2025.

A Last-Minute Extension, But Not a Reprieve

Although the Trump administration issued a 90-day extension just before the tariffs were set to begin, that didn’t eliminate them completely. "The tariff went up to 10% for all of those countries, except for China," said Mackenchery. "China’s tariff, meanwhile, is changing by the hour."

Many companies are currently pausing shipments to the U.S., hoping a resolution will be reached during the extension window. Orders placed months ago are now in storage, and we are awaiting clarity.

Scramble to Beat the Deadline

The Bitcoin mining industry mobilized quickly to avoid the immediate financial impact. “We started chartering cargo planes out of Malaysia and Thailand to get shipments into the U.S. before the original deadline,” said Mackenchery. "We were bidding against companies like Apple and Nintendo for plane space."

This moment, he said, highlighted how much the industry has matured. “Six or seven years ago, no one would have imagined the Bitcoin mining sector competing with major tech firms for global logistics resources.”

Direct Impacts on Hardware Pricing

As expected, the uncertainty has created volatility in equipment pricing. Mackenchery explained:

“The prices of ASIC units and used hardware in the U.S. jumped immediately after the reciprocal tariffs were announced. Once the extension was granted, we saw that spike flatten out.”

But it's not just mining rigs. Smaller components like PSUs, fans, control boards, power cables, and transformers—most of which are still sourced from China—are facing increased costs and logistical headaches.

Compass Mining’s Position

Despite the turbulence, Compass Mining is relatively well-positioned. “We have warehouses in both Hong Kong and Shenzhen, so we’re not forced to move inventory immediately. We’re still selling and actively shipping,” Mackenchery said.

That said, the company is closely monitoring the situation and hoping for a diplomatic resolution that will ease global supply chain pressure—not just for Bitcoin miners but for all U.S.-based companies.

The Bigger Picture: Manufacturing and Policy

Mackenchery acknowledges the intent behind the tariffs. “We understand why the administration is doing this. It’s meant to bring manufacturing back to the U.S., and that conversation needed to happen eventually,” he said.

But he’s also realistic about the economic challenges. “Labor costs are higher here. It’s just not currently feasible for most companies to manufacture domestically without serious tax incentives or government grants.”

Conclusion

The evolving tariff landscape serves as a reminder that even decentralized industries like Bitcoin mining aren’t immune to global trade policies. As the situation develops, miners, suppliers, and consumers must adapt quickly.

“We’re all watching closely,” Mackenchery said. “Not just for Compass, but for the health of the entire industry.”