A US trade policy aimed at protecting the steel industry could have an unintended and damaging side effect: creating new headwinds for climate policy. The inclusion of wind turbines on the list of “derivative” products subject to steel tariffs threatens to increase the cost of renewable energy projects, potentially slowing down the green transition.
Wind turbines are massive structures that rely heavily on steel for their towers and internal components. By classifying them as a “derivative” steel product, the US has subjected a cornerstone of green technology to its protectionist trade measures. This move directly impacts European manufacturers who are key players in the global renewables market.
The tariffs will inevitably raise the price of wind turbine components exported to the US, making new wind farm developments more expensive. This could lead to delays or cancellations of projects, undermining both US and global efforts to expand renewable energy capacity and meet climate targets.
The inclusion of wind turbines on the list of 407 categories highlights the indiscriminate nature of the “derivative” policy. While perhaps intended to capture industrial goods, it has swept up a critical tool in the fight against climate change, placing trade protectionism in direct conflict with environmental goals.
This situation creates a dilemma for policymakers on both sides of the Atlantic who are publicly committed to climate action. It demonstrates how trade disputes, if not carefully managed, can spill over and cause significant collateral damage to other critical policy agendas.