MIT Technology Review Narrated How Trump’s tariffs could drive up the cost of batteries, EVs, and more
May 7, 2025
The podcast delves into the economic fallout from potential tariffs imposed by the incoming administration. It highlights how these tariffs could drive up costs for batteries and electric vehicles, affecting the shift to cleaner industries. The discussion also covers the implications for domestic manufacturing and competition in clean tech investments. Additionally, the risks of inflation and the potential stalling of the economy due to increased costs of essential minerals for clean energy technologies are thoroughly examined.
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Tariffs Raise Clean Tech Costs
- Trump's tariffs on imports could sharply increase prices for batteries, EVs, and steel, slowing clean technology growth in the U.S.
- Tariffs act as domestic taxes that raise costs for companies and consumers, risking inflation and economic slowdown.
China's Battery Market Dominance
- China dominates global battery production and processing of critical minerals, making U.S. dependence on Chinese batteries difficult to avoid.
- Even large tariffs won't fully displace low-cost Chinese batteries, but will increase costs for U.S. companies in clean energy sectors.
Steel Tariffs Impact Clean Tech
- U.S. imports large amounts of steel, especially from Mexico and Canada, used heavily in clean tech projects.
- Imposing 25-100% tariffs on steel imports could add billions in costs, intensifying competition for domestic steel supplies.