The Trump Administration’s plans to apply tariffs on US imports from Canada and Mexico will impact progress to reduce the cost of energy produced by US wind and solar farms.
In response to the tariffs announcement, trade body American Clean Power Association (ACP), released a statement from Jason Grumet, ACP CEO.
Grumet stated that while energy production only represents 5% of the nation’s direct GDP, it drives the productivity of the entire economy, impacting prices of nearly all consumer goods.
“In concert with the other trade associations representing America’s energy resources, ACP is concerned that increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance,” said Grumet.
“While the fuel relied upon by wind and solar energy-complemented by battery storage-is free, some parts for these machines that harness these renewable resources are manufactured in Canada and Mexico.
“As we have made significant progress manufacturing these components in the United States, the benefits of USMCA have been a positive factor in lowering American energy costs.
“We look forward to working with the Administration as it pursues multiple imperatives.”
President Donald Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.
Energy resources from Canada will have a lower 10% tariff.