How Tariffs are Undermining U.S. Energy and Economic Security

The document examines how wide-ranging tariffs, including those imposed under the International Emergency Economic Powers Act (IEEPA), increase the cost of essential materials like steel, aluminum, and copper, thereby raising prices for energy infrastructure and slowing the deployment of clean energy technologies. It highlights that while the administration seeks 'energy dominance,' these trade policies create investment uncertainty and risk ceding leadership in next-generation technologies—such as advanced nuclear, geothermal, and batteries—to competitors like China. The authors recommend replacing blunt tariffs with targeted, time-bound measures paired with robust industrial policy and strategic alliances to ensure long-term competitiveness.

• Broad tariffs on essential materials like steel, aluminum, and copper increase the cost of energy production and infrastructure, potentially delaying grid upgrades and raising consumer prices.
• The current tariff regime has negatively impacted manufacturing growth and investment; the U.S. has experienced higher manufacturing input price inflation than any other country, and North America is the only region where manufacturing production has declined.
• Tariffs and policy uncertainty are hindering the U.S. battery industry, which is currently dominated by China (75% of global production). Two billion-dollar factories intended to expand U.S. battery capacity have already been cancelled.
• Next-generation geothermal and advanced nuclear projects are vulnerable to rising input costs and investment uncertainty. In the nuclear sector, Russia and China currently dominate global construction, with 55.5 GW of the 69.5 GW total under construction as of December 2024 being built by their companies.
• The U.S. Court of International Trade ruled in late May that the administration exceeded its authority under the International Emergency Economic Powers Act (IEEPA) to impose retaliatory tariffs, though this decision was subsequently paused by the U.S. Court of Appeals for the Federal Circuit.
• The authors suggest that to achieve energy dominance, the U.S. should shift to targeted, predictable, and time-bound tariffs, integrate clean energy tax credits from the Inflation Reduction Act, and strengthen partnerships with allies to diversify supply chains away from China.

APA

Yellen, D., & Saha, S. (2025). How Tariffs are Undermining U.S. Energy and Economic Security. Clean Air Task Force. https://www.catf.us/resource/policy-brief-how-tariffs-undermining-us-energy-economic-security/

Chicago

Yellen, David, and Sagatom Saha. How Tariffs are Undermining U.S. Energy and Economic Security. Clean Air Task Force, 2025. https://www.catf.us/resource/policy-brief-how-tariffs-undermining-us-energy-economic-security/.

Wikipedia

{{cite report |last1=Yellen |first1=David |last2=Saha |first2=Sagatom |title=How Tariffs are Undermining U.S. Energy and Economic Security |publisher=Clean Air Task Force |date=4 June 2025 |url=https://www.catf.us/resource/policy-brief-how-tariffs-undermining-us-energy-economic-security/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yellen2025how, author = {Yellen, David and Saha, Sagatom}, title = {{How Tariffs are Undermining U.S. Energy and Economic Security}}, institution = {Clean Air Task Force}, year = {2025}, month = jun, url = {https://www.catf.us/resource/policy-brief-how-tariffs-undermining-us-energy-economic-security/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }