The new tariffs imposed by the Trump istration, including a 25% tariff on imports from Mexico and Canada and an additional 10% on Chinese imports, will negatively impact the US wind energy sector and create a more expensive market, according to the latest Wood Mackenzie report. dw2k

These tariffs, combined with increased import restrictions in the US onshore wind sector, could lead to higher overall costs, threatening the viability of projects and potentially slowing industry growth.

The report states that the new measures "could increase the costs of onshore wind turbines in the US by 7% and the overall project costs by 5%, given the current established U.S. supply chain."

Endri Lico, senior analyst at Wood Mackenzie, argues that "protectionist policies will raise capital spending on wind projects. In a scenario with universal tariffs of 25% on all imported products, the impact would be even greater, as turbine costs could rise by 10%, and overall project costs would increase by 7%. This would have material impacts on the industry, putting some projects at risk due to economic factors."

The US wind industry relies heavily on imports, particularly components such as blades, transmissions, and electrical systems.

In 2023, imports of wind energy-related equipment to the U.S. were valued at $1.7 billion, 41% of which came from Mexico, Canada, and China.

According to the report, the proposed tariffs will have an incremental impact on the economics of the U.S. onshore wind sector, increasing the levelized cost of energy (LCOE) by 4% in the short term. In the scenario of universal 25% tariffs, the LCOE would rise by 7%.

Lico added, "supply chain players are waiting for the dust to settle, exploring their options" He said, "We expect wind manufacturers to adopt a combination of measures to mitigate the impact of tariffs, including redirecting and restructuring their supply chains and assembly lines, strengthening localization in the U., and raising their prices."

"Tariffs are not an unprecedented situation for the wind industry. Wind industry peers expect tariff legislation to be specialized to fully assess the impact. The tariffs imposed during the previous Trump istration had a minimal impact on the U.S. wind segment, while a more flexible monetary policy could soften the impact of tariffs," Lico concluded.