Offshore wind developers have already been struggling with rising costs and President Donald Trump’s permitting freeze. Now add Greenland to their list of worries.
Rising tensions between the U.S. and Denmark over the Arctic island is another risk facing offshore wind projects planned along the East Coast. Trump reportedly threatened Danish Prime Minister Mette Frederiksen with tariffs after she rebuffed Trump’s offer to buy the gigantic island on a recent phone call.
Trump’s trade threat illustrates a growing danger to U.S. offshore wind projects. The vast majority of wind components are manufactured abroad — and in Denmark in particular. Five projects planned in U.S. waters have agreements to buy turbines from Vestas Wind Systems, a Danish company, or Siemens Gamesa, which makes wind turbines in Denmark.
While some analysts believe Trump is blustering about slapping tariffs on Denmark, a longtime ally, they don’t doubt that he’s serious about erecting wider trade barriers to foreign goods. In a speech last weekend to congressional Republicans, Trump said new tariffs on products like steel are on the way.