news 
The recent introduction of tariffs by the US administration has sent shockwaves through the clean tech industry and global markets alike. In a move that is likely to have far-reaching consequences, MSCI’s Asia index fell 4.5% in response to the news.
As the situation unfolds, experts warn that President Trump’s tariffs will deal a significant blow to the US clean energy sector. The uncertainty surrounding ongoing subsidies has already had an impact on the industry, and these new measures are likely to further exacerbate the issue.
The cost of key components such as lithium-ion batteries is expected to increase, which could have devastating consequences for the US clean tech industry. In 2020, the US imported $4 billion worth of lithium-ion batteries from China alone during the first four months of last year.
It’s clear that this development will also have an impact on China, with some analysts suggesting that Chinese electric vehicle companies may gain a stronger position in the market as a result of Trump’s tariffs. However, Dr Kyle Chan from Princeton University notes that “Chinese electric vehicle imports to the US, which were already minimal, will not be significantly affected by Trump’s new tariffs.”
Furthermore, the wind industry is likely to face further setbacks due to the fact that wind turbines rely heavily on imported components. According to Endri Lico of Wood Mackenzie, a 25% tariff could lead to a 10% increase in the cost of building onshore wind turbines and a 7% increase for renewable energy as a whole.
The situation is unprecedented, with some experts suggesting that China may redirect its exports towards more open EU markets. This could have disastrous consequences for the survival of clean-tech industries, despite the EU’s efforts to support them.
In the face of such uncertainty, it remains unclear how this development will ultimately play out. However, it’s clear that President Trump’s tariffs will deal a significant blow to the US clean energy sector and global markets alike.
It is essential that we prioritize long-term investment in the clean tech industry, which is severely affected by this decision.
Source: https://www.forbes.com/sites/heatherfarmbrough/2025/04/05/not-making-america-green-the-impact-of-president-trumps-tariffs/
