New trade tariffs and import restrictions in the United States on the onshore wind sector could increase costs, posing a risk to project viability and slowing industry growth, according to a report from Wood Mackenzie.
The report, Trade War Hits US Onshore Wind Power, states that proposed tariffs of 25% on imports from Mexico and Canada and an additional 10% on Chinese imports could raise onshore wind turbine costs by 7% and overall project costs by 5%, given the current supply chain structure.
The US wind industry relies heavily on imports, particularly for components such as blades, drivetrains, and electrical systems. In 2023, wind-related equipment imports were valued at $1.7 billion, with 41% sourced from Mexico, Canada, and China.
According to the report, the proposed tariffs will increase the levelised cost of energy (LCOE) for US onshore wind by 4% in the near term. If universal 25% tariffs are implemented, LCOE could rise by 7%.
