We’ll start with the good news, John: Trump’s tariffs are not going to stop the global transition to clean energy.
The bad news? These tariffs mean the U.S. will fall even further behind other countries in the transition to clean energy, hurting not only the domestic clean energy industry but also American consumers as a whole.
The threats to the clean energy transition are multi-pronged:
First, Donald Trump’s tariffs have instilled fears of a global recession, tanking oil and gas prices. That means it’s now cheaper to pollute and harder to incentivize investment in clean alternatives, such as low-carbon heating and electric vehicles.
Additionally, China is the world’s latest manufacturer of clean energy technologies. By cutting off access to the cheap, clean energy technology developed in China, the United States is further driving up the price of developing clean power.
And while the U.S. can step into this vacuum of clean energy technology, developing a domestic manufacturing base by opening up new factories will take time, because the materials we need to build these factories such as cement, steel, and aluminum are usually imported and will also be subjected to tariffs.
All the while, China will divert sales of their clean energy technologies to other countries eager to develop clean energy. So while that’s a plus for the global clean energy transition, it’s a nail in the coffin for the American market share.
There’s no way around it: the more the U.S. cuts itself off from the rest of the world, the more other countries are speeding up their transitions to clean energy and leaving us in the dust.
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