Renewables Industry Warns of Impact from U.S. Tariffs on Supply Chain Across Europe

Credit:The White House

The global renewables sector is assessing the potential consequences of U.S. President Donald Trump's tariffs, with industry leaders warning that the dispute could disrupt the renewable energy supply chain across Europe.

RenewableUK's Deputy Chief Executive, Jane Cooper, expressed concern over the escalating trade tensions, noting that tariffs could increase costs for consumers and harm the renewables industry. “Tariffs and trade disputes risk pushing up prices for consumers and harming industry, so the priority must be resolving this dispute and developing a UK trade strategy that strengthens our energy security and reduces risks to the UK supply chain,” Cooper said.

She further highlighted the challenges posed by the tariffs, especially combined with the U.S. government's recent moves to halt wind development. “These tariffs, combined with the US Government's recent moves to halt the development of offshore wind, will mean American and UK companies will miss out on opportunities to trade, invest, and collaborate in innovative clean technology.”

Although trade between the UK and the U.S. in renewable energy goods is relatively limited, Cooper emphasized the broader impact, saying, “Many of our manufacturers operating in the UK – and collectively employing thousands of people here – also have factories in the EU, so President Trump's announcements will have a far-reaching impact across our sector.”

The impact of the tariffs is also being felt in the UK manufacturing sector, with concerns raised about long-term consequences. Make UK CEO, Stephen Phipson, described the tariffs as “devastating” for British manufacturing. “The US President's announcement of 10% tariffs on UK goods exported to the United States and 25% tariffs on British-made autos, steel, and aluminium is devastating for UK manufacturing,” Phipson said. He added that the move would not only reduce direct exports to the U.S. but could also unravel decades of integrated supply chains between the UK, the U.S., and other trading partners like the EU, Canada, and Mexico.

In the solar sector, industry sources noted that tariffs could lead to lower solar panel prices in other markets due to oversupply, as U.S. demand declines. Despite the challenges, Phipson remarked, “For decades the UK and the US have enjoyed a balanced trade relationship,” underlining the broader economic impact of the tariffs.

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use