What Trump's tariffs might mean for you
For those looking to switch to heat pumps, it's important to note that tariffs currently being put in place will raise their production cost. Plus, rebates are also potentially on the chopping block. But what does this potentially mean for your bottom line?
Take Canada, for instance. As America’s largest supplier of oil, electricity and natural gas, the country provided 61% of its crude oil imports in 2021, as well as 98% of its natural gas imports and 93% of its electricity imports in 2020.
The 10% tariffs levied on Canadian energy mean companies there will incur higher costs that will inevitably trickle down to everyday Americans (particularly those in the Midwest, which shares an electrical grid with Canada and heavily relies on their trade, according to Evergreen Action).
A big reason you'll feel it is becasue the industry's supply chain is slow to move and change.
For example, it takes a lot of time, effort and capital to change operations, so you won't quickly see new infrastructure like pipelines and refineries. Also, new rare earth minerals and elements are scarce, making clean energy projects pricier as electricity demand boosts.
This means Americans in states heavily dependent on Canadian hydropower and electricity (like the Pacific Northwest, Minnesota, New England, New York and Michigan) will experience higher electricity bills.
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Find the best rate for youWhat about other clean energy products?
Other clean energy products may get pricier as tariffs hit the solar, battery, wind and electric vehicle industries.
As the Scientific American (SciAm) reported, The American Clean Power Association (ACPA) trade group said it was "concerned that increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance."
The countries impacted by Trump's tariffs happen to be major players in the clean energy sectors that create products Americans have come to rely on, like solar panels and electric vehicles.
According to SciAm, China, Canada and Mexico have a major role in creating the components required to upgrade the electrical grid and grow clean energy.
For example, some machinery parts that help create renewable resources are made in Canada and Mexico. Both countries supply a significant amount of America's steel, which comprises about 75% of a wind turbine.
Mexico is a growing electric vehicle production hub, Canada provides roughly half of the refined nickel in the U.S. — a key part of batteries — and China produces about three-quarters of the lithium-ion batteries used in electric vehicles, according to the International Energy Agency.
The foreign manufacturer in all of these cases is likely to experience higher production costs, which eventually get passed down to American consumers.
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