The Trump Administration's proposal to impose tariffs on U.S. imports from Canada and Mexico could have adverse effects on the cost of energy produced by U.S. wind and solar farms, according to industry representatives.
In response to the tariffs announcement, the American Clean Power Association (ACP) issued a statement from its CEO, Jason Grumet, highlighting concerns over rising energy production costs. Grumet pointed out that although energy production accounts for only 5% of the nation's GDP, it plays a crucial role in driving overall economic productivity, with energy costs affecting nearly all consumer goods.
“In concert with the other trade associations representing America's energy resources, ACP is concerned that increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance,” said Grumet.
He explained that while wind and solar energy production relies on free fuel, such as wind and sunlight, some essential components for wind turbines and solar panels are sourced from Canada and Mexico. “We have made significant progress manufacturing these components in the United States, and the benefits of USMCA have been a positive factor in lowering American energy costs,” Grumet added.
The proposed tariffs include a 25% additional levy on imports from Canada and Mexico, as well as a 10% tariff on imports from China. However, energy resources imported from Canada will face a lower tariff rate of 10%.
“We look forward to working with the Administration as it pursues multiple imperatives,” Grumet concluded, expressing hope for further collaboration to address the challenges posed by the new tariff policies.
