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Commerce is Investigating Tariffs on Imports of Wind Turbines and Their Parts

A larger number of wind turbines and solar panels are being imported into the United States. According to the American Action Forum, the United States imported about $1.8 billion worth of wind turbines and component parts in 2024, mainly from Mexico, France, India, Denmark, and Germany — countries that provided 83% of those imports. As of June 2025, wind turbine imports have reached almost $1.4 billion, a 97% increase from the same period last year. Trump’s Department of Commerce is investigating the national security implications of importing wind turbines and component parts under Section 232 of the Trade Expansion Act of 1962. Should President Trump enact tariffs on these turbines and parts at the 50% tariff rate currently in place on steel and aluminum imports, the American Action Forum has calculated that approximately $385 million in costs would be incurred.

Source: American Action Forum

The American Action Forum argues that the large increase in imports in 2025 may be due to companies importing products prior to the imposition of a large-scale tariff. They report that the weighted average tariff rate between 2015 and 2024 for wind turbine imports was 2.2%. The American Action Forum explains that, because of President Trump’s 10% universal tariff and tariffs imposed via the International Emergency Economic Powers Act, in June 2025, wind tariffs were 9.3%, costing $87 million between January and June. The steel and aluminum in wind turbines and component parts were subject to the 50% tariff due to the August inclusion of 407 steel and aluminum derivative products.

U.S. Wind Generation

In 2024, wind generated 10.5% of total U.S. utility-scale electricity generation, having increased its share substantially over the past two decades. However, wind only supplies 1.6% of U.S. energy needs. Solar energy, while increasing, generated about half of wind’s generation at 5.1%. Fossil fuels (natural gas, coal, and petroleum) generated 59% of the country’s total utility-scale electricity in 2024. The remaining share was generated by nuclear, hydropower, and other renewables, including biomass and geothermal.

One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) is phasing out wind-energy-related tax credits. The OBBBA provides that wind projects must be placed in service for federal income tax purposes before the end of 2027 in order to claim the clean electricity production credit or the clean electricity investment credit under the Inflation Reduction Act. However, projects that begin construction on or before July 4, 2026, are exempt from the early sunset if they are placed in service in 2029 or 2030, which would satisfy the four-year continuity safe harbor. The OBBBA also terminates the advanced manufacturing production credit for wind project components produced and sold after 2027.

Trump Administration and Wind Power

President Trump issued executive actions impacting the wind energy industry, including temporarily withdrawing offshore wind leasing through an executive order and halting some ongoing offshore wind projects. He also canceled projects on federal lands and launched a full review of offshore wind energy regulations, including leases, permits, rights-of-way, and loans. According to President Trump, offshore wind disrupts fishing zones, threatens wildlife (such as birds, bats, and the North Atlantic Right Whale), damages large sections of the ocean floor, and burdens Americans with high electricity costs and unreliable electricity — all while operating at less than half its rated capacity. Offshore wind is more expensive than onshore wind, and its costs have increased due to high interest rates, supply chain issues, and inflation, resulting in project cancellations.

The Trump administration temporarily halted work on the Empire Wind project off the coast of Long Island, but later allowed it to proceed in return for New York allowing two natural gas pipelines that would bring gas to the New England area to proceed. The cost of power from Empire Wind 1 is expected to be three times the cost of natural gas generation. The Trump administration also halted work on the 704-megawatt Revolution Wind Farm, which was to supply electricity to Massachusetts and Rhode Island, despite the project being 80% complete.  It has also cancelled a 1,200-megawatt, 231-turbine wind project that was to be located on 57,000 acres of federal land in southern Idaho, with turbine height over twice that of the Statue of Liberty.

Analysis

As the American Action Forum explains, “It remains to be seen what criteria the administration would use to determine whether wind turbine imports pose any national security threats.” Without a full understanding of the threat posed by wind turbines, it’s difficult to draw any conclusions about whether restricting their import is justified. If they contain rogue communication devices, as found in some Chinese-manufactured solar panels, the argument for tariffs becomes stronger due to the national security risks involved. Offshore wind is one of the most expensive options for generating electricity, with costs rising due to elevated interest rates, supply chain challenges, and inflation, leading to project cancellations. Given the existence of state-level policies that mandate generation from renewable energy, if tariffs are simply to protect domestic industry, then they’re ill-advised because they end up insulating domestic producers from competition, which leads to stagnation in quality, while raising prices for everyone else.

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