US President Donald Trump has unveiled his decision to impose a 25% tariff on all steel and aluminium imports, a move that could significantly affect the country's offshore wind industry. The announcement, made during a briefing with reporters as he traveled from his Mar-a-Lago estate in Florida to the Super Bowl in New Orleans on Sunday evening, may lead to higher costs for manufacturers, including those in the renewable energy sector.
While the decision has received backing from some domestic steel and aluminium producers, as well as key trade unions, the tariffs are expected to raise input costs for a range of industries, including offshore wind. Steel, a critical material in the production of offshore wind infrastructure, is used to make monopiles, transition pieces, jackets, and offshore substations required for turbine installation and power transmission.
“The decision to impose tariffs could disrupt the offshore wind sector's supply chain,” said an industry insider familiar with the matter. “Steel imports are crucial for the construction of wind farm infrastructure, as well as the US-flagged vessels that support these projects.”
In 2023, the US imported $82.1 billion worth of steel and iron and $27.4 billion of aluminium, while exporting $43.3 billion of steel and iron and $14.3 billion of aluminium, according to the Financial Times. The impact of the tariffs on the domestic offshore wind sector remains uncertain, but it follows an executive order issued last month by Trump that temporarily halted offshore wind lease sales and paused permits for wind projects both onshore and offshore.
Oceantic Network, a group focused on clean energy, criticized the executive order, calling it a “blow to an American energy industry” that could harm US businesses and workers. CEO Liz Burdock stated, “This decision flies in the face of our current energy crisis and the new administration's priorities on American-made energy.”
The American Clean Power Association (ACP), a trade group representing renewable energy industries, expressed concern over the tariffs' potential to increase energy production costs. ACP CEO Jason Grumet noted, “Increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance.”
The full scope of the tariffs' impact on the offshore wind industry and broader energy costs will become clearer as implementation details unfold.
