Trump Tariffs Threaten Bitcoin Mining

CRYPTO
Trump Tariffs Threaten Bitcoin Mining

After China’s 2021 crypto crackdown, many Bitcoin miners moved to the U.S., drawn by cheap energy and strong capital markets. The industry thrived, especially after Donald Trump—who promised to mine all remaining Bitcoin in the U.S.—won the presidency. But in April, Trump’s sweeping tariff policy threatened to upend it all.

Most mining machines used in the U.S. come from Southeast Asia. New tariffs, up to 36%, would severely hurt profits, according to industry players like Luxor Technology. Top-tier mining machines cost $4,000–$5,000, and a 36% increase could crush already tight margins.

With most U.S. mining based in Georgia, Texas, and New York, companies are now racing to import machines before the tariffs hit in July or exploring overseas expansion.

Despite the uncertainty, some firms remain committed to staying in the U.S.—but say clear, stable policy is essential to continue investing and growing domestically.

ECONOMY
China Boosts Spending Amid Trade Tension

China ramped up government spending in Q1 2025, posting its fastest first-quarter fiscal expansion since 2022. Total outlays from its main budgets rose 5.6% year-over-year to 9.26 trillion yuan ($1.3 trillion), amounting to nearly 22% of its annual spending plan. The move comes as China braces for weakening exports amid rising U.S. tariffs, persistent deflation, and a prolonged property downturn.

Despite stable growth in Q1, economists expect a slowdown in the coming quarters. Major banks have downgraded China’s 2025 growth outlook to 4% or lower—well below the government’s 5% target. Officials are implementing support measures and may add more stimulus, including potential rate cuts and additional bond issuance.

Government revenue fell 2.6% in Q1 due to shrinking land sales and lower tax receipts, widening the budget deficit 41% to 2.3 trillion yuan. Analysts say more aggressive fiscal policy will be crucial to offset external shocks and support domestic demand.

FINANCE
Buffett, Dimon Support Higher Taxes

Warren Buffett and Jamie Dimon, leaders of Berkshire Hathaway and JPMorgan Chase, are calling on Washington to raise taxes on the wealthy to promote fairness and help reduce the federal deficit. Surprisingly, some Republicans are now considering a “millionaires’ tax,” a shift influenced by Donald Trump’s populist stance. The proposed tax aims to fund benefits like Social Security and tip-based tax breaks.

However, such a tax would mostly impact high-earning professionals—doctors, lawyers, and executives—rather than billionaires like Buffett, Elon Musk, or Jeff Bezos, whose wealth largely comes from investments taxed at lower rates. Due to legal loopholes, many billionaires have historically paid little to no federal income tax.

Despite past efforts, such as Obama’s “Buffett Rule,” meaningful reform has been blocked. While Trump has expressed interest in closing the carried interest loophole, real change remains uncertain. Critics argue only major structural reforms—not income tax hikes—would significantly affect ultra-wealthy taxpayers.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.