"US renewables stand to lose big in a trade war, but the sting extends to oil and other energy industries, say researchers from Wood Mackenzie."
"The Trump administration’s ever-changing policies on tariffs and trade have injected chaos into the global energy economy.
On Wednesday, a federal court blocked President Donald Trump from being able to adopt tariffs under an emergency-powers law. The administration is appealing the ruling. This sets up additional legal wrangling in addition to the conflicts over trade that were already happening.
Analysts at the research firm Wood Mackenzie gave themselves the task of predicting where US tariff policy may be heading. The result is a report issued this week, “Trading Cases: Tariff Scenarios for Taxing Times,” that shows the huge gap in outcomes between a trade war and a trade truce.
My main takeaway from it is that everyone loses in a prolonged conflict. Even the oil and gas industry, which has close ties to the Trump administration, would face falling prices for its products at the same time that the costs of much of its equipment are rising because of tariffs.
The US renewable energy and battery industries stand out for the potential severity of their downturns because development here relies heavily on components made in other countries. The Biden administration sought to encourage manufacturers to build in the United States, but those efforts are still in their early stages, and many of the government incentives are now on the chopping block."
Dan Gearino reports for Inside Climate News May 31, 2025.
SEE ALSO:
"Trump’s Moves To Speed Energy Projects Could Slow Them" (E&E News)
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