President Donald Trump’s tariffs could create significant disruptions for low-carbon industries that are already under strain because of potential rollbacks of key tax credits.

Analysts are predicting that wind, solar and clean energy manufacturing could see higher costs and project delays after Trump announced 10 percent tariffs on nearly all U.S. imports last week, along with higher tariffs on some trading partners. Trump’s tariffs “spell chaos for clean energy markets,” research firm BloombergNEF said in a report Friday.

Grid batteries, which are tied to many solar projects, are “particularly exposed,” said Antoine Vagneur-Jones, the firm’s head of trade and supply chains. The technology is now facing a roughly 65 percent tariff that could rise to more than 80 percent by next year.

Most grid batteries come from China, which Trump has stacked with tariffs on top of the ones implemented during the Biden administration. Higher costs for storage because of Chinese tariffs could have a ripple effect for renewable energy projects, as well as plans to install batteries to even out grid fluctuations, Vagneur-Jones said.

GET FULL ACCESS