One of the leading manufacturers of physical crypto wallets, Trezor, is grappling with the harsh reality of an uncertain future following President Donald Trump’s announcement of imposing sweeping tariffs. The company is now in the process of adapting its supply chains to mitigate the looming impact of these tariffs.
The tariffs, which include a base rate of 10%, are slated to come into effect on April 5. This blanket tariff will apply to all countries on the US’s tariff list. Furthermore, higher tariffs will commence from April 9, targeting approximately 60 nations that the US identifies as the “worst offenders.”
“We are already altering our supply chains to minimize the potential impact of these tariffs and to ensure the stability and availability of our products for users globally,” a spokesperson for Trezor told Protos.
Significantly, the 34% and 20% tariffs against China and the European Union respectively could potentially inflate the cost of imported components used in the production of hardware wallets, according to Trezor.
Based in the Czech Republic, Trezor is closely monitoring the situation and modifying its strategies to counter any challenges that may emerge due to shifts in international trade policy.
While the company acknowledges the current situation’s volatility, it also suggests that these tariffs could act as a catalyst for tech companies to bolster their supply chains and reduce reliance on specific regions.
The crypto mining sector is also feeling the heat, with a significant portion of their supply chain based in Asia. The Head of Hardware at Luxor Technology, a Bitcoin (BTC) mining software company, told Bloomberg she’s racing against the clock to import 5,600 mining machines from Thailand to the US before the tariffs come into effect.
The CEO of mining firm Synteq Digital expressed concerns that Trump’s tariffs could “suppress the continued growth in the sector.” The news of the tariffs sent stocks worldwide into a slump. Both BTC and Trump’s memecoin suffered a dip in the past 24 hours, with prices falling by 4.9% and 13.9% respectively.
In conclusion, the impact of these tariffs extends beyond traditional industries, reaching into the realm of emerging technologies and digital assets. As companies like Trezor adapt and strategize to navigate these uncertain times, the fallout of these trade policies will undoubtedly shape the future of the crypto industry.
