The Trump administration’s tariff policy is likely to ‘complicate’ the transition to renewable energy across the Americas, a new report by GlobalData has suggested.
According to the North and South America Renewable Energy Policy Handbook 2025, the implications from tariffs are likely to be significant – on the one hand seeking to bolster domestic manufacturing and reducing import dependence, while on the other, disrupting supply chains and slowing the deployment of clean energy technologies, GlobalData said.
‘Punitive duties’
“The tariffs expansion has introduced punitive duties on a range of clean energy components, including solar modules, wind turbines, transformers, and battery-related parts,” commented Sudeshna Sarmah, power analyst at GlobalData.
“While the intention behind the tariffs is to stimulate domestic production, the reality is that the current manufacturing capacity in the US falls short of meeting the burgeoning demand for utility-scale developments. This mismatch has resulted in inflated prices and significant delays in project timelines.”
Trade relationships
By disrupting regional trade relationships, such as between the US and Canada and US and Mexico, the tariffs have complicated energy cooperation initiatives, resulted in logistical bottlenecks and increased compliance costs for energy firms operating across North America.
South America isn’t immune either, with Sarmah adding that the continent’s renewable energy sector is “particularly stressed” as a result of the tariffs.
“Shortages of critical components and heightened procurement risks have slowed grid modernisation efforts and increased uncertainty for utilities,” she said. “As a result, long-term investments in clean energy projects have been inhibited, further complicating the region’s energy transition.”
As demand for renewable energy continues to increase, addressing these tariff-related obstacles will be critical to maintaining project timelines and meeting decarbonisation targets, GlobalData noted.
‘As the US tariff landscape continues to evolve, the implications for energy markets across the Americas are profound,’ it noted. Read more here.
