Looming Tariffs on Wind Turbines

Action: On August 13, the Commerce Department initiated a Section 232 investigation under the Trade Expansion Act of 1962 to assess whether imports of wind turbines and related components pose a risk to US national security. The action reflects the Administration’s broader policy shift on wind energy (including its recent stop-work orders on two offshore wind projects not covered by earlier restrictions on offshore wind development, though one was allowed to resume construction.) It also follows earlier investigations in other sectors that led the Administration to impose tariffs, raising the prospect of comparable measures for wind turbine equipment.

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The scope of the investigation focuses on US demand for wind turbines and components, the capacity of domestic production to meet that demand, and reliance on concentrated foreign supply chains. The Department will also examine subsidies, predatory trade practices, and potential export restrictions, evaluate options to expand domestic capacity, and determine whether additional trade measures should be taken to safeguard national security. The Department is accepting public comments through September 9.
This action follows an announcement extending existing tariffs on steel and aluminum to wind turbines, parts, and components. In June, the President raised the tariff rate on steel and aluminum to 50%, from 25%. These tariffs were imposed after a Section 232 investigation initiated in 2018, with tariffs restored and raised to a higher level in March 2025.
Wind power accounts for approximately 10% of total US electricity generation in the US, with most turbines concentrated in the middle of the country, where the supply chain is more mature than offshore wind.
US wind power, both onshore and offshore, relies on imported wind equipment. One industry analysis estimated that the United States imported related products worth $2.83 billion, with Germany, Mexico, France, and India, as well as Denmark as important suppliers. The analysis also estimates that an increase of 10% in the cost of input costs in an offshore wind project raises the cost of the energy produced by 4%, raising the prospect that high tariffs could make some projects less viable commercially.
The future of US wind power development, particularly offshore wind, remains uncertain, as financing challenges and shifting policies threaten to slow new projects. While the Inflation Reduction Act included incentives to expand domestic wind capacity, the recently enacted P.L. 119-21 phased-out most wind facility credits. Further, the Department of the Interior rescinded designated Federal areas for wind energy development and increased scrutiny of permitting for wind and solar projects.
China and the EU continue to dominate global wind power deployment and advance ambitious renewable energy targets.

Looming Tariffs on Wind Turbines

August 28, 2025

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The scope of the investigation focuses on US demand for wind turbines and components, the capacity of domestic production to meet that demand, and reliance on concentrated foreign supply chains. The Department will also examine subsidies, predatory trade practices, and potential export restrictions, evaluate options to expand domestic capacity, and determine whether additional trade measures should be taken to safeguard national security. The Department is accepting public comments through September 9.

This action follows an announcement extending existing tariffs on steel and aluminum to wind turbines, parts, and components. In June, the President raised the tariff rate on steel and aluminum to 50%, from 25%. These tariffs were imposed after a Section 232 investigation initiated in 2018, with tariffs restored and raised to a higher level in March 2025.

Wind power accounts for approximately 10% of total US electricity generation in the US, with most turbines concentrated in the middle of the country, where the supply chain is more mature than offshore wind.

US wind power, both onshore and offshore, relies on imported wind equipment. One industry analysis estimated that the United States imported related products worth $2.83 billion, with Germany, Mexico, France, and India, as well as Denmark as important suppliers. The analysis also estimates that an increase of 10% in the cost of input costs in an offshore wind project raises the cost of the energy produced by 4%, raising the prospect that high tariffs could make some projects less viable commercially.

The future of US wind power development, particularly offshore wind, remains uncertain, as financing challenges and shifting policies threaten to slow new projects. While the Inflation Reduction Act included incentives to expand domestic wind capacity, the recently enacted P.L. 119-21 phased-out most wind facility credits. Further, the Department of the Interior rescinded designated Federal areas for wind energy development and increased scrutiny of permitting for wind and solar projects.

China and the EU continue to dominate global wind power deployment and advance ambitious renewable energy targets.

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