The U.S. renewable energy industry has raised concerns over the Trump administration’s newly announced tariffs on imports from Canada, Mexico, and China, warning that these measures could drive up costs for clean energy projects and slow progress in reducing energy prices.

The American Clean Power Association (ACP), which represents the wind, solar, and battery storage industries, acknowledged the administration’s focus on addressing the fentanyl crisis but cautioned that the additional tariffs could have unintended consequences for energy affordability and supply chains.

“ACP and its member companies share the Trump Administration’s concern over the fentanyl crisis and public health emergency impacting our communities. ACP recognizes and appreciates the Administration’s early focus on this crisis,” said Jason Grumet, CEO of ACP.

However, Grumet emphasized that higher tariffs on key imports could undermine efforts to keep energy costs low. “ACP also supports the Administration’s commitment to lower American energy prices. While energy production only represents 5% of our nation’s direct GDP, it drives the productivity of our 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.”

The new tariffs impose a 25% duty on most imports from Canada and Mexico, while energy resources from Canada will face a reduced 10% tariff. Imports from China, which supplies critical components for renewable energy technologies, will also see a 10% tariff increase. This is particularly concerning for the wind and solar industries, which rely on imported parts such as turbine components, solar panel materials, and battery storage systems.

Grumet highlighted how trade agreements like the United States-Mexico-Canada Agreement (USMCA) have played a key role in reducing energy costs by ensuring stable supply chains. “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.”

Renewable energy advocates argue that while the U.S. has made significant strides in domestic manufacturing, the clean energy industry still relies on international supply chains to maintain cost-effective production. A rise in import costs could not only increase energy prices but also delay new clean power projects at a time when demand for renewable energy is growing.