The recent imposition of tariffs by US President Donald Trump is poised to significantly impact the renewable energy sector, industry executives told the Financial Times.
The leaders expressed concerns that the new tariffs may lead to potential price hikes and supply chain disruptions, which could hinder the US’ progress in the green energy sector.
Notably, President Trump imposed a 10% tariff on all imports using his International Emergency Economic Powers Act of 1977 (IEEPA) authority. This became effective on 5 April 2025.
Additionally, higher reciprocal tariffs on countries with which the US has the largest trade deficits are set to begin on 9 April 2025.
There is a 10% to 49% duty on electrical components, battery storage, and other equipment sourced from China, Southeast Asia, and Europe. These measures put pressure on the renewable sector, which is already facing challenges due to the administration’s support for fossil fuels and limited investment in clean energy.
EDP Renewables North America chief executive Sandhya Ganapathy told the publication: “This could be a potential de-railer when we really have to usher in this new era of energy dominance to put the US at the epicentre of data centres and AI technology. It is unsettling from a business perspective and creates disruption.”
Last year, electricity prices climbed at twice the rate of inflation, according to Bank of America, with several utilities seeking double-digit rate increases to offset higher labour, material, and grid upgrade costs.
Meanwhile, JPMorgan Chase CEO Jamie Dimon has also expressed concerns that these tariffs could precipitate a global trade war, potentially pushing the US economy toward a recession and straining international alliances.
Recently, a report from energy think tank Ember said that renewable sources accounted for 32% of global electricity generation last year. This growth is driven by rising electricity demand, fuelled by heatwaves and the expansion of data centres.
Energy security concerns, exacerbated by the trade tensions initiated by the US tariffs, may further accelerate the shift towards renewable energy, Reuters quoted Ember electricity and data analyst Euan Graham as saying.
