Analysts Say Trump Trade Wars Would Harm the Entire US Energy Sector, From Oil to Solar
1 min read
Summary
The chaotic US tariff policies introduced by the Trump administration have had a negative impact on the global energy economy, creating a lose-lose situation in a trade war scenario, according to a report by Wood Mackenzie.
Oil and gas companies, which generally enjoy favourable relations with the government, face declining prices for their products while at the same time experiencing increased production costs due to US tariffs on steel and other industrial materials they require.
The hit will be hardest on US renewable energy, and particularly battery industries, as the country’s recent encouragement of manufacture of these products domestically is still in its infancy, while many government incentives are now under threat.
While the report concludes that the “trade tension” scenario is the most likely, it also finds that a full-blown “trade war” would cause a global recession, with the global economy growing at an average of just 2.7% between now and 2030.
