Trump’s tariffs will deliver a big blow to climate tech
1 min read
Summary
The growing policy uncertainty and Trump administration weakening economic condition pose significant dangers to the progress made by the US in reducing greenhouse-gas emissions and its leadership position in the crucial cleantech sector.
Trump’s massive tariffs and the subsequent threat of a global trade war has prompted a downturn in stock markets worldwide, increasing the probability of a punishing recession.
The budget currently being negotiated in Congress will determine the future of clean energy subsidies for electric vehicles, battery production and more, as established by Biden’s climate law, the Inflation Reduction Act.
Traditional energy stocks were also negatively affected by the Trump administration’s potential impact on the cleantech sector.
Since taking office, companies have cancelled, delayed or scaled back at least $8 billion worth of investments in clean energy developments, representing over 9,000 job losses.