The Trump administration is launching an investigation into how imports of wind turbines and components affect national security, a move that could spur additional tariffs and challenges for the industry.
In a Federal Register notice Thursday, the Commerce Department called for public comments on the probe, which commenced on Aug. 13 under Section 232 of the Trade Expansion Act of 1962.
The plan comes as multiple headwinds are facing the wind industry, including faster phase-outs of tax credits than other technologies under Trump’s megalaw and an Interior Department review of offshore regulations.
In the notice, Commerce outlined issues it was “especially interested” in examining, including projected demand for turbines and the extent that domestic production can provide wind equipment.
The move follows an announcement by Commerce this week to include wind turbines among new products subject to an existing 50 percent tariff on steel and aluminum.
As of 2023, more than 40 percent of wind equipment came from Mexico, Canada and China, according to data from Wood Mackenzie. Some segments of the industry are more reliant on overseas companies than others — the majority of turbine blades are imported, while wind towers are more tied to domestic suppliers. Turbines also consist mainly of steel, which is largely imported from Canada and Mexico.
The plan is part of a broader administration assault on wind. Along with the phase-out of credits in the megalaw, the administration has proposed slashing funding for the Department of Energy’s wind and solar program. It has also ordered agencies to take regulatory steps such as keeping turbines away from highways and surveying developers about the effect of wind on eagles.
According to research firm BloombergNEF, the megalaw’s rollback of tax credits could have a more severe effect on wind than other renewables because of the longer connection and permitting timelines needed to build farms.
While solar installations are expected to decline 23 percent through 2035 compared to a business-as-usual scenario, onshore wind could fall as much as 50 percent, BNEF said.
A report last month from Wood Mackenzie and the American Clean Power Association found that the U.S. wind market grew significantly in the first quarter but that turbine orders dropped 50 percent in comparison to the same period last year, the lowest level since the pandemic.
“The surge in first quarter wind installations, combined with a strong development pipeline, underscores the wind industry’s resilience and its capacity to rapidly deliver the clean, affordable, and reliable energy America needs. But this momentum is threatened by the changing policy landscape,” John Hensley, ACP’s senior vice president of markets and policy analysis, said in a statement.
On Wednesday, Trump wrote on social media that he would not approve new wind and solar projects on farmland.
Section 232 tariffs target products that are deemed to hinder national security. Trump has initiated similar probes of other products that affect the energy sector, including copper, timber, trucks and critical minerals.
Reporter Hannah Northey contributed.
