Trump’s tariffs will deliver a big blow to climate tech

“It will be difficult to think about the pure technology sectors or climate technology sectors that do not face tremendous risks,” says Noah Kaufman, researcher researcher at the Center for Global Energy Policy at Columbia University, who served in the Economic House of Economists under President Joe Biden.

“I think we are a country without a federal climate strategy at this stage, with an economy heading in the wrong direction, so I do not see many reasons for optimism.”

The depth and impact of the upcoming economic transformations can depend on many variables that are still in play and on the reactions that are still coming. In particular, the ongoing negotiations in congress on the budget will determine the fate of subsidies for electric cars, batteries production and other clean technologies. Several of these programs have been created by the former President Biden Climate law, the Law of Inflation.

But there are increasing escalating challenges and risks across the clean technology and climate sectors. It is worth noting that any slowdown in the broader economy threatens to tighten the financing of companies and prices on the capital for startups that work to remove carbon, artificial flights, electricity delivery vehicles, and other technologies that help companies achieve climate work goals.

In addition, the Trump tariff, especially now 54 % of the Chinese goods tax, will increase the costs of the main components of many companies. It is worth noting that the United States imported 4 billion dollars of Li -Ion batteries from China during the first four months of last year, and therefore the increase in customs tariffs will impose a huge tax on products that enter electric cars, mobile computers, phones and many other devices.

Also, the high prices of aluminum, steel, copper, cement, and many other goods and materials will increase the costs of carrying out all types of businesses, including building wind turbines, solar farms, and thermal thermal plants. And if China, Canada, the European Union and other countries respond to reprisal trade measures, as expected widely, they will also become the most difficult or more expensive American companies to export goods such as EVS or battery components to external markets.

Even traditional energy stocks were beaten in Wall Street on Thursday, fearing that any broader economic slowdown will reduce the demand for electricity.

The Trump administration to the Ministry of Energy and other federal programs can take away money from clarification projects that help technology companies test and increase their technologies. And if Congress cancels certain benefits in the law to reduce inflation, this may lead to a billion dollar projects that are planned or perhaps even some are already under construction.