clipart of a mallet striking a depiction of global renewable energy sources

As the climate crisis accelerates and global competition intensifies, clean technology is no longer a niche industry—it is a cornerstone of national security, economic leadership, and environmental survival. The recent expansion of U.S. tariffs on Chinese imports, including many clean tech components, highlights a deeper urgency: the United States must rapidly scale domestic clean energy innovation or risk falling behind in the most pivotal global transition of the 21st century (Thambi, 2025).

Tariffs Signal an Urgent Need for U.S. Capability

The Inflation Reduction Act, bipartisan infrastructure investments, and state-level climate initiatives kick-started America’s clean energy future. But trade policy is now pulling in the opposite direction. In 2025, the U.S. government expanded its trade war measures to include tariffs of up to 145% on critical imports from China (Huld, 2025). While the policy is designed to curb China’s market dominance and protect American manufacturing, it also exposes a fundamental vulnerability: the U.S. is not yet fully equipped to meet its clean energy demands without foreign supply chains.

timeline of tariffs imposed by the U.S. and China toward each other

Figure 1. Tariffs imposed against all imported goods for other countries. The U.S. and China have slapped specific tariffs on goods like steel and agricultural products, which come from these duties. Graph by Prinz Magtulis of Reuters.

 

With limited domestic production capacity, renewable energy will escalate as a long-term liability. If the U.S. cannot quickly manufacture the clean technologies it now restricts, it risks price hikes, project delays, and a loss of competitiveness in global markets.

Global Climate Goals at Stake

Climate scientists are concerned. The IPCC’s Shared Socioeconomic Pathway 3 (SSP3) scenario—dubbed “Regional Rivalry”—highlights the dangers of rising protectionism (Vailles, 2021). According to this framework, national interests and trade barriers hinder global efforts to mitigate climate change, particularly by restricting access to affordable clean technologies (New Zealand Ministry for the Environment, 2024).

China, for example, produces 80% of all EV manufacturing inputs and is set to account for over 60% of global renewable energy worldwide by 2030 (Thambi, 2025). U.S. tariffs that limit access to Chinese supply chains may slow the domestic energy transition and raise costs for consumers and industry alike. Some fear it could delay the U.S. in meeting its climate goals—just as electrification is gaining momentum.

Semiconductor Exemption: A Strategic Lifeline

There is one bright spot in the 2025 tariff package: semiconductor manufacturing equipment has been exempted from the 145% tariffs (White House, 2025). This creates a vital opportunity for clean energy innovation.

Harmonized Tariff Schedule (HTS) code Product description Date added to the exemption list
8541.90.00 Parts of diodes, transistors, similar semiconductor devices, photosensitive semiconductor devices, LEDs and mounted piezoelectric crystals April 2
8541.59.00 Other semiconductor devices, other than semiconductor-based transducers, other than photosensitive devices, nesoi April 2
8541.51.00 Other semiconductor-based transducers, other than photosensitive transducers April 2
8541.49.95 Other photosensitive semiconductor devices, other than diodes or transistors, nesoi April 2
8541.49.70 Other photosensitive semiconductor transistors April 2
8541.49.10 Other photosensitive semiconductor diodes, other than light-emitting April 2
8541.30.00 Thyristors, diacs and triacs, other than photosensitive devices April 2
8523.51.00 Solid-state non-volatile storage devices April 11
8486 Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays April 11

Figure 2. HTS codes are printed as provided by the White House, displaying codes of materials that are used in PV, EV, and battery manufacturing. On April 2, the White House said the published exemption lists are meant for “informational purposes only, and are not intended to delimit in any way the scope of the action.” Table sourced from Edwin Lopez of the Supply Chain Dive.

Semiconductors are essential for everything from solar inverters and EVs to smart thermostats and battery management systems. With the right investment strategy, the U.S. can build out its semiconductor capacity for clean energy applications. Ensuring a steady, domestic supply of the technologies most critical to our climate future (Lopez, 2025). But that opportunity must be seized quickly—and paired with broader efforts to align trade, industrial, and climate policy.

What Must Happen Now: Aligning Policy with the Planet

The stakes couldn’t be higher. Clean technology is the new space race, and the clock is ticking. To turn tariffs into an opportunity rather than an obstacle, experts from the Carnegie Endowment for International Peace recommend a combination of approaches:

  • Leapfrog Strategy: Invest in battery innovation that reduces dependence on critical Chinese-controlled minerals. 
  • Friendshoring: Strengthen clean tech ties with allies like India to diversify the supply chain. 
  • Domestic Prioritization: Scale up U.S.-based technologies such as geothermal and grid efficiency solutions to gain competitive ground. 
  • Joint Ventures: Promote technology transfer through global partnerships instead of outright isolation.

The Risk of Falling Behind

Without action, the U.S. risks falling behind in the race to lead the global cleantech market. While tariffs may protect American jobs in the short term, they could also undermine long-term climate and economic resilience by cutting off access to affordable, innovative green technologies. America’s leadership in clean tech is falling short of an essential need. 

As climate change accelerates, the stakes couldn’t be higher. The path the U.S. chooses now—between isolation and cooperation—will define not only its clean energy future but also its global leadership on climate.

Tariffs alone won’t build a resilient clean energy economy. That will take coordinated investment, smart industrial strategy, and global collaboration. Most of all, it will require aligning every policy—including trade—with the urgency of the climate crisis.

The planet doesn’t care about tariff schedules. It responds to carbon. And carbon can’t wait.

 

Sources

Thambi, A. (2025, February 15). Are Tariffs A Bad Idea For Climate Change? Forbes. https://www.forbes.com/sites/simithambi/2025/02/18/are-tariffs-a-bad-idea-for-climate-change/

Huld, A. (2025, April 11). Trump Raises Tariffs on China to 145% – Overview and Trade Implications. China Briefing. https://www.china-briefing.com/news/trump-raises-tariffs-on-china-to-125-overview-and-trade-implications/

Vailles, C. (2021, September 14). Where do the five new IPCC scenarios come from? Institute for Climate Economics. https://www.i4ce.org/en/where-do-the-five-new-ipcc-scenarios-come-from-climate/

New Zealand Ministry for the Environment. (2024, May 08). Intergovernmental Panel on Climate Change SSP-RCP scenarios. Government of New Zealand Ministry of the Environment. https://environment.govt.nz/what-you-can-do/climate-scenarios-toolkit/climate-scenarios-list/ipccs-ssp-rcp-scenarios/

White House. (2025, April 11). Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as Amended. The White House. https://www.whitehouse.gov/presidential-actions/2025/04/clarification-of-exceptions-under-executive-order-14257-of-april-2-2025-as-amended/

Lopez, E. (2025, April 14). Trump excludes some electronics from reciprocal tariffs. Supply Chain Dive. https://www.supplychaindive.com/news/trump-electronics-tariff-exemption-list/745209/ 

Gordon, N., Mcbride, M. (2025, March 27). How Can the U.S. Stop Losing the Race for Clean Energy? Carnige Endowment for International Peace. https://carnegieendowment.org/videos/2025/03/how-can-the-us-stop-losing-the-race-for-clean-energy?lang=en