Hey everyone, check out the latest twist in global trade! Recent U.S. tariffs by the Trump administration are sending shockwaves through the energy sector, impacting everything from oil production to renewable power investments. According to a new analysis by Wood Mackenzie, these policies might be triggering an energy crisis that could reshape the global market landscape. ⚡
The report highlights that what was meant to bolster domestic production may, in fact, be backfiring. In a severe trade war scenario—with U.S. effective tariff rates possibly exceeding 30%—global GDP could shrink by nearly 3% by 2030, and oil demand could plunge as soon as 2026. Imagine oil prices sliding down to an average of $50 per barrel, putting a major squeeze on U.S. shale producers!
But it’s not just the oil industry feeling the heat. The tariffs are also putting a dent in renewable energy investments, making the U.S. a high-cost playground for wind, solar, and storage projects. Industries related to metals and mining, key ingredients for modern energy infrastructure, are expected to see sharp declines in demand for aluminum, copper, steel, and lithium. 🚀
For our tech-savvy and eco-aware readers across South and Southeast Asia, these developments offer an important reminder: global economic policies can have far-reaching impacts, influencing energy prices and investment trends worldwide. Staying informed and adaptable is key as the energy landscape evolves in these fast-changing times.
Reference(s):
U.S. tariffs to trigger energy crisis amid global economic uncertainty
cgtn.com
