The implementation of reciprocal tariffs by the Donald Trump administration is creating new challenges for the clean energy transition across the Americas, according to a recent report by GlobalData. The measures, particularly visible in sectors deemed critical to national interests such as energy, are reshaping trade dynamics and disrupting renewable energy supply chains throughout the region.

Designed to strengthen domestic manufacturing and reduce reliance on imports, the US tariffs have instead had the unintended consequence of causing major disruptions in clean energy supply chains. As a result, GlobalData warns that the tariffs are expected to complicate the renewable energy transition across the continent.

GlobalData’s latest publication, “North and South America Renewable Energy Policy Handbook 2025,” highlights how the evolving US tariff landscape has generated ripple effects within the country and beyond, affecting trade across the American continent. The report notes that energy producers, suppliers, and consumers must remain flexible in adapting to these policy shifts, which require a re-evaluation of supply chain strategies, contractual structures, and domestic production capabilities.

Sudeshna Sarmah, Power Analyst at GlobalData, explained that the recent expansion of tariffs has introduced punitive duties on a broad range of clean energy components, including solar modules, wind turbines, transformers, and battery-related parts. “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,” Sarmah said. “This mismatch has resulted in inflated prices and significant delays in project timelines.”

The report further emphasizes that the tariff measures have strained regional trade relationships, particularly with Canadian and Mexican exporters. The imposition of strict domestic content and origin requirements has triggered additional duties on cross-border transactions, complicating energy cooperation initiatives across North America. This regulatory environment has led to logistical bottlenecks and higher compliance costs for companies operating within the region, exacerbating the challenges faced by the clean energy sector.

According to Sarmah, the effects of these tariffs are also being felt in South America, where the renewable energy sector is under increasing pressure. “Shortages of critical components and heightened procurement risks have slowed grid modernization efforts and increased uncertainty for utilities,” she noted. “As a result, long-term investments in clean energy projects have been inhibited, further complicating the region’s energy transition.”

GlobalData concludes that while the U.S. tariff strategy seeks to promote domestic industry, its broader impact on regional energy markets risks undermining progress toward clean energy goals. The interconnected nature of supply chains across the Americas means that continued tariff expansion could deepen existing challenges, raising costs and delaying the continent’s shift toward a more sustainable energy future.