New US executive action on reciprocal tariffs may slow wind market growth, increase costs, and jeopardize clean energy targets, says Global Wind Energy Council.
The Global Wind Energy Council (GWEC) has raised concerns following the announcement of a new reciprocal tariff regime by the United States aimed at addressing persistent goods trade deficits. The executive action, which introduces a “worldwide tariff,” is expected to impact clean energy imports and global trade practices significantly.
Ben Backwell, CEO of GWEC, emphasized that “fair and transparent trade is essential to achieving the goals of the global energy transition.” He warned that escalating trade barriers could slow wind market growth, raise costs, and undermine the financial sustainability of the global wind sector.
According to GWEC and IEA data, tariffs and non-tariff measures (NTMs) already account for up to 9% of the cost of a wind nacelle. The IEA Energy Technology Perspectives 2024 report also reveals that such trade restrictions contribute to around 20% of the cost of solar PV modules globally.
Backwell cautioned, “Trade barriers are the wrong tool for driving economic growth. Instead, this is a moment for coordinated, trade-friendly industrial policies that can support local manufacturing while fostering international cooperation.”
A 2023 joint report by GWEC and Boston Consulting Group, titled “Mission Critical: Building The Global Wind Energy Supply Chain For A 1.5°C World,” warned that under a high-barrier scenario, the world could fall 650 GW short of its 2030 net-zero target.
GWEC reaffirmed its commitment to working with governments, institutions, and private sectors to promote enabling policies that drive sustainable, strategic, and inclusive growth for wind energy.