US President Donald Trump’s decision to impose global import tariffs on just about every country in the world has led to retaliatory action from many of America’s major trading partners – including China and the EU.
Regarding the specific impact that this will have on climate finance and the green transition, there has been widespread concern and condemnation from the world’s media.
Climate Brief has reported that mounting tension around trade is already impacting global energy flows and climate change initiatives. The publication canvassed opinion from a number of researchers and policy experts on what the future holds for global climate initiatives and energy supplies.
The general view was that China’s hand could be strengthened in areas such electric vehicle production and the export of clean tech to markets, such as Europe. This could undermine EU plans to support the clean energy sector within Member States. Meanwhile, the US would almost certainly have less resources to address climate change, whilst countries coming under economic pressure might resort to relaxing their environmental standards.
Elsewhere, Reuters have reported that the Italian Government has called for the immediate suspension of the EU Green Deal, which is focussed on cutting industry emissions across the bloc.
The Conversation has suggested that although a tariff-induced economic slowdown might be positive since it would reduce greenhouse gas emissions, over the longer term, trade wars are likely to lead to a reduction in international renewable energy projects – reversing the current trend of increased spending.
And in a blog post, The Center for Global Development has warned that Trump’s new tariff regime is a further blow for Africa, with a disproportionate impact on the poorest countries. Over the last 25 years, via the African Growth and Opportunity Act (AGOA), these local income nations have enjoyed duty-free access to US markets, worth nearly $10bn annually. The AGOA agreement is due to expire in September 2025, with global tariffs now threatening its retention.
Experts: What do Trump’s tariffs mean for global climate action? – Carbon Brief
Italy to ask immediate suspension of EU Green deal rules following U.S. tariffs | Reuters
What Donald Trump’s dramatic US trade war means for global climate action
The New US Tariff Regime Is Another Blow for Africa | Center For Global Development
