The U.S. government has finalized new tariff policies on steel and aluminum imports, expanding duties on a range of steel-derived products that play a critical role in clean energy development. Under the updated trade rules, the baseline tariff of 10% will now apply more broadly, with the potential for further increases following a temporary 90-day pause granted by the Biden administration.
These expanded tariffs are expected to significantly raise project costs for the renewable energy sector. Analysts estimate that annual tariff-related expenses for the energy, utilities, and resources industry could skyrocket from approximately $400 million to as much as $53 billion. The ripple effects are likely to be felt across the clean energy supply chain, particularly in wind energy and transmission infrastructure.
Industry groups and environmental advocates are raising alarms, warning that the policy shift could slow the momentum of the green transition. Many projects in planning stages are already being reevaluated due to higher costs and extended lead times for imported materials like steel towers, rebar, and structural components.
“This is a major setback,” said Rachel Martinez, director at the Clean Grid Alliance. “These tariffs will undercut investment in renewable energy and make it harder for the U.S. to meet its climate goals.”
Despite the backlash, administration officials defended the move as necessary to strengthen domestic manufacturing and address unfair trade practices. The 90-day review period will determine whether additional increases go into effect.
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