Impact of President Trump's Administration on the Energy Industry, United States, 2024-2030

Regulatory Reforms and Policy Shifts are Driving Domestic Production and Fossil Fuel Favoritism

The election of Donald Trump as President of the United States has had a significant impact on various industries, including the energy sector, both domestically and globally. The rollback or suspension of policies from the Biden administration has fundamentally changed the investment landscape.

While there is potential for growth in renewable energy, the pace of investment and expected returns have shifted. The U.S. solar market continues to grow despite challenges, thanks to the Inflation Reduction Act, supportive state policies, corporate sustainability efforts, and initiatives that increase access to solar energy. These factors help mitigate the effects of federal tariffs and contribute to the industry’s expansion.

In contrast, the offshore wind industry has come to a standstill, facing challenges even before President Trump took office. The current administration has a preference for fossil fuels; however, global pricing and demand dynamics still affect the rate of domestic production growth in the United States.

Moreover, the imposition of tariffs has created considerable uncertainty in the market. Nonetheless, the temporary suspension of these tariffs for 90 days has raised hopes for a negotiated solution.