POLITICO Energy How Trump’s steel and aluminum tariffs impact energy
Feb 12, 2025
The discussion kicks off with President Trump's bold 25% tariffs on imported steel and aluminum, designed to protect U.S. manufacturing. Market reactions reveal a cautious tone from both allies and industry insiders, revealing uncertainty in the energy sector. The conversation delves into how these tariffs could hike costs for crucial carbon capture initiatives and impact infrastructure projects. Historic parallels to previous tariffs shed light on potential repercussions for energy production and manufacturing.
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New Steel and Aluminum Tariffs
- Trump announced new 25% tariffs on all imported steel and aluminum.
- The administration justifies the tariffs as protection for the U.S. manufacturing sector.
Mixed Market Reaction and Industry Hesitation
- Market reaction to the tariffs was mixed, with some indices remaining flat while others fluctuated.
- Allies remain critical, while the energy industry adopts a "wait-and-see" approach due to Trump's unpredictable tariff history.
Impact on Infrastructure and Energy
- The tariffs will increase infrastructure costs across various sectors, including industrial construction and drilling.
- The carbon capture industry, which requires specific steel types, will face higher expenses.