The renewables industry is counting the cost of US President Donald Trump’s tariffs amid warnings that the dispute will impact the renewables supply chain across Europe.
RenewableUK’s Deputy Chief Executive Jane Cooper said: “Tariffs and trade disputes risk pushing up prices for consumers and harming industry, so the priority must be resolving this dispute and developing a UK trade strategy that strengthens our energy security and reduces risks to the UK supply chain.
“These tariffs, combined with the US Government’s recent moves to halt the development of offshore wind, will mean American and UK companies will miss out on opportunities to trade, invest and collaborate in innovative clean technology.”
Cooper added that while trade in goods for the renewable sector between the UK and the US is relatively limited, RenewableUK is “concerned at the wider impact these tariffs could have on the supply chain in the UK and across Europe”.
“Many of our manufacturers operating in the UK – and collectively employing thousands of people here – also have factories in the EU, so President Trump’s announcements will have a far-reaching impact across our sector”, Cooper said.
One of the UK’s leading manufacturing trade organizations said the tariffs will have a “devastating” impact on manufacturing.
Make UK CEO Stephen Phipson said: “The US President’s announcement of 10% tariffs on UK goods exported to the United States and 25% tariffs on British made autos, steel and aluminium is devastating for UK manufacturing.
“Not only will volumes of direct exports to the US decline but it will destroy decades of integrated supply chains connecting the UK with US through other trading partners such as the EU, Canada and Mexico who are also impacted by US tariffs.”
Solar industry sources said that if the tariffs make solar panels more expensive in the US, they would become cheaper in other markets due to oversupply.
Phipson added that for decades the UK and the US have enjoyed a balanced trade relationship.
“It is highly disappointing that the strength of this relationship, at a time of where both countries need to boost shared growth, employment opportunities and innovation options, does not extend to enhancing free trade rather the reverse”, Phipson said.
Make UK is calling on Government to convene a Tariffs Taskforce that will bring together a full spectrum of British industry, alongside relevant government departments to help companies navigate their way through the new tariff complexities and uncertainties.
More to follow…