In March 2025, the United States under President Donald Trump imposed sweeping US tariffs targeting major international trading partners, including 25% duties on steel and aluminum, new tariffs on foreign automobiles, and broad levies on imports from China, Mexico, Canada, and the European Union. These protectionist measures, billed as Liberation Day, aimed at boosting domestic manufacturing.
An despite now being paused for 90 days, these tariffs quickly raised concerns about increased costs for electricity, vehicles, and other goods, threatening clean energy adoption and global climate efforts. A positive side-effect is also the decline in dropshipping which is not particularly known for its sustainability.
In this article we will look at the short-term and long-term effects of these new US tariffs.
- 1 Short-Term Impacts of US Tariffs
- 2 Long-Term Impacts of US Tariffs
- 3 Severe Impact of US Tariffs on Sustainability
- 4 FAQ: US Tariffs Under Trump and Their Impact on Clean Energy and Global Trade
- 4.1 What are the new US tariffs imposed in March 2025?
- 4.2 How do these tariffs affect clean energy in the US?
- 4.3 Which clean energy imports were hit hardest by the US tariffs?
- 4.4 What is the short-term impact of the 2025 US tariffs?
- 4.5 How much did EV prices rise after the tariffs?
- 4.6 What’s the long-term effect of US tariffs on climate goals?
- 4.7 How do the tariffs impact global climate cooperation?
- 4.8 Why are US tariffs making clean technology more expensive?
- 4.9 Are clean energy companies relocating production to avoid tariffs?
- 4.10 Could these tariffs be reversed?
- 4.11 What should policymakers do to counter the damage?
- 5 Sources
Short-Term Impacts of US Tariffs
Short-Term Impacts: Supply Chain Disruptions
Immediately following implementation, these tariffs will severely disrupt global supply chains critical to renewable energy and electric vehicles (EVs). American utilities will face critical shortages of electrical components like transformers and switchgear, essential for grid expansion. The U.S., heavily reliant on imports for such equipment, imported over $29 billion in power transformers in 2024 alone, with large shares from Mexico and China.
Example: Solar Industry Imports Before and After Tariffs (March-April 2025)
| Country | Import Value (Feb 2025) | Import Value (Apr 2025) | Change (%) |
|---|---|---|---|
| Vietnam | $240 million | $81 million | -66.2% |
| Malaysia | $195 million | $38 million | -80.5% |
| Thailand | $180 million | $15 million | -91.7% |
| China | $350 million | $42 million | -88.0% |
Manufacturers will find it challenging to quickly relocate production, with experts predicting “years of pain” due to these trade barriers.
Short-Term Impacts: Cost Increases for Clean Technologies
The tariffs function as import taxes, and will rapidly inflate prices for renewable energy equipment and electric vehicles.
Cost Impact on U.S. Solar Panel Production (2025)
| Component | Average Cost Increase Due to Tariffs |
| Steel Mounting Systems | +18% |
| Aluminum Frames | +25% |
| Solar Cells (imported) | +20% |
Solar developers and installers will face enormous project delays and cancellations due to increased costs.
Impact of Tariffs on Electric Vehicle Prices (Average U.S. Market, April 2025)
| Vehicle Type | Price Before Tariffs | Price After Tariffs | Price Increase |
| Mid-size Electric SUV | $42,500 | $48,875 | +15% |
| Electric Sedan | $35,000 | $40,250 | +15% |
Higher EV prices slow consumer adoption, directly threatening emission reduction targets.
Short-Term Impacts: Slower Adoption of Green Technologies
Supply disruptions and inflated prices will inevitably stall clean energy deployment. Past tariffs already resulted in significant cancellations – 10.5 GW of planned U.S. solar installations lost from earlier tariffs represented $19 billion in investments, sufficient to power roughly 1.8 million homes and reduce 26 million metric tons of CO2 emissions.
Long-Term Impacts of US Tariffs
Long-Term Consequences: Undermining Climate Goals
Persistent tariffs risk pushing climate targets out of reach. The U.S. had committed to significant emission reductions by 2030 and net-zero emissions by mid-century. However, slowed deployment of renewables and EVs due to tariffs jeopardizes these goals.
Projected CO2 Emissions Due to US Tariff-Related Clean Tech Slowdown (U.S.)
| Scenario | Projected Emissions (2030) | Difference from Target |
| Original U.S. Emission Targets | 3,800 million tons CO2 | 0 |
| With Persistent Tariffs | 4,550 million tons CO2 | +750 million tons |
Long-Term Consequences: Reduced Innovation and Investment
Trade barriers introduce substantial uncertainty, dampening long-term investment in clean technologies.
Predicted Decline in Clean Tech R&D Investment (2025-2030)
| Sector | Projected Investment (No Tariffs) | Projected Investment (With Tariffs) | Decline (%) |
| Advanced Solar Tech | $15 billion | $9 billion | -40% |
| Battery & Storage Systems | $20 billion | $13 billion | -35% |
This innovation slowdown would maintain higher long-term costs and fewer advancements in crucial sustainable technologies.
Long-Term Consequences: Strained International Climate Cooperation
The US tariffs also strain diplomatic relationships critical for global climate cooperation, harming collective climate action.
Impact on International Climate Agreements
| Agreement/Initiative | U.S. Involvement Pre-Tariffs | U.S. Involvement Post-Tariffs |
| Paris Climate Accord | Active participant | Strained cooperation |
| Global Methane Pledge | Key contributor | Reduced commitments |
Countries affected by the US tariffs face economic pressures that could o their turn lead them to reduce climate ambitions or retaliate economically, creating further challenges for international environmental cooperation.
Severe Impact of US Tariffs on Sustainability
The US tariffs enacted by the Trump administration in March 2025, though aimed at economic objectives, pose a certain threat to environmental sustainability in both the short and long term. In the near term, we see concrete impacts like supply chain disruptions, increased costs for clean technologies, and delayed adoption of solar power and electric vehicles, all of which slow down progress toward lowering emissions.
Over the longer term, the picture grows even more concerning: trade barriers risk derailing emissions targets, stifling green innovation, and weakening the international cooperation that is vital for tackling climate change.
Countries on the receiving end of the US tariffs – from key suppliers of solar panels and EV batteries like China and Southeast Asia, to close U.S. partners like the EU, Canada, and Mexico – are experiencing economic strain and are forced to make tough policy choices that could hinder their own clean energy transitions. The tariffs thus create a lose-lose scenario globally: they not only hamper the U.S. clean energy sector (with higher consumer prices and lost jobs in renewables, but also undermine sustainability efforts in the affected countries, whether by reducing their green tech exports, cutting into their climate program funding, or prompting retaliatory moves that further fragment the world’s climate response.
Ultimately, this analysis highlights that trade policy and climate policy are tightly interlinked. Protectionist tariffs on clean technology supply chains act as a drag on the collective momentum needed to combat climate change. In an era when accelerating the green energy transition is crucial to meet climate goals, such trade barriers are counterproductive – they delay the deployment of cleaner infrastructure and foster an environment of uncertainty and division. As history and the latest expert insights suggest, escalating trade tensions leave “everybody losing” in a trade war scenario, and the climate is no exception.
Avoiding these harmful outcomes will require careful policy reconsideration and international dialogue. Removing or adjusting the tariffs, alongside strong domestic incentives for clean industries, could help realign trade practices with the urgent need for sustainability, ensuring that economic strategies do not thwart environmental progress. In the end, a cooperative approach – rather than new barriers – is more likely to spur both economic revival and the global green energy progress needed for a sustainable future.
FAQ: US Tariffs Under Trump and Their Impact on Clean Energy and Global Trade
What are the new US tariffs imposed in March 2025?
In March 2025, President Donald Trump introduced aggressive tariffs on steel, aluminum, foreign automobiles, and a wide range of imports from China, Mexico, Canada, and the European Union. Branded as “Liberation Day”, the tariffs include:
- 25% duties on steel and aluminum
- New taxes on imported cars
- Broad levies on clean tech components
These were intended to boost domestic manufacturing but triggered economic and environmental consequences.
How do these tariffs affect clean energy in the US?
They increase prices for essential components used in solar panels, wind farms, and EVs. For instance:
- Steel mounting systems rose by 18%
- Aluminum frames by 25%
- Solar cells by 20%
This leads to project delays, cancellations, and slower adoption of renewables, directly threatening decarbonization efforts.
Which clean energy imports were hit hardest by the US tariffs?
Solar panel imports from major suppliers plummeted:
- Vietnam: –66.2%
- Malaysia: –80.5%
- Thailand: –91.7%
- China: –88.0%
These countries previously covered the bulk of the U.S. solar market, leaving a critical gap in the supply chain.
What is the short-term impact of the 2025 US tariffs?
Immediate consequences:
- Severe supply chain disruptions, especially for power transformers and EV parts
- Spike in clean tech costs
- Delays and cancellations of renewable energy projects
- Higher prices for electric vehicles (+15% on average)
- Slower rollout of green technologies and infrastructure
How much did EV prices rise after the tariffs?
By April 2025:
- Mid-size electric SUVs jumped from $42,500 to $48,875
- Electric sedans rose from $35,000 to $40,250
These price hikes make EVs less accessible, slowing consumer adoption and undermining emission targets.
What’s the long-term effect of US tariffs on climate goals?
With persistent tariffs:
- U.S. emissions could hit 4,550 million tons by 2030, 750 million above target
- Clean tech investment could fall by up to 40%
- International climate agreements face tension and reduced cooperation
This delays clean energy transitions and risks missing critical climate milestones.
How do the tariffs impact global climate cooperation?
The U.S. role in key agreements like the Paris Accord and the Global Methane Pledge is now under strain. Countries hit by tariffs may retaliate or scale back climate action, weakening global coordination when it’s most needed.
Why are US tariffs making clean technology more expensive?
Tariffs act as import taxes. They increase the cost of raw materials and parts – steel, aluminum, semiconductors – used in renewable infrastructure. With limited domestic capacity, the U.S. must either pay more or wait longer, both of which stall progress.
Are clean energy companies relocating production to avoid tariffs?
Not quickly. Relocation takes years. Experts warn of “long-term pain” as companies struggle with factory setup, workforce training, and regulatory compliance in new regions.
Could these tariffs be reversed?
Not without a political shift. Unless the administration changes course or Congress intervenes, the tariffs remain in place. Reversal would require major trade renegotiations and a commitment to climate-first economic policy.
What should policymakers do to counter the damage?
- Remove or reduce tariffs on clean technologies
- Reinvest in international climate partnerships
- Offer incentives to domestic manufacturers without penalizing imports
- Promote open markets to accelerate innovation and affordability
Sources
- Kate Magill, Manufacturing Dive – Manufacturing economy stalls amid tariff confusion: PMI, April 1, 2025.
- Benjamin Storrow et al., Scientific American/E&E News – Trump’s Tariffs Are Expected to Undermine the Clean Energy Transition, April 2, 2025.
- Carbon Brief – Experts: What do Trump’s tariffs mean for global climate action?, March 2025.
- Ryan Kennedy, PV Magazine USA – How Trump’s widespread tariffs affect the U.S. solar industry, April 3, 2025.
- Solar Energy Industries Association (SEIA) – Study: Solar Tariffs Cause Devastating Harm to U.S. Market, Economy and Jobs, Dec 2019.
