'Bullying' approach

陈小将

According to an April survey by CNBC, more than half of respondents said reshoring manufacturing to the US is expensive, with some characterizing the Trump administration's approach as "bullying corporate America". Wood Mackenzie even expected layoffs and factory closures as demands drop.

"By bringing manufacturing back home through high tariffs, the US is risking undermining market expectations for green and low-carbon investments," Xiang from Sichuan said. "It could disrupt the global division of labor and supply chains in green industries, negatively affecting investment, trade and stock performance in the sector, ultimately driving up the cost of clean energy development."

Since the Industrial Revolution, the US has released more heat-trapping gases than other countries. As of 2021, it had been releasing about 5 billion metric tons of carbon dioxide per year, which was about 13.49 percent of the total global emissions, according to the US National Oceanic and Atmospheric Administration. Given this outsized legacy, the US bears a critical responsibility in leading global climate efforts.

However, its recent imposition of tariffs on clean energy components, along with a broader retreat from climate action, threatens to undermine the global transition to a low-carbon economy, experts said. These policies not only raise costs but also send discouraging signals to the international community.

"Tariffs hinder the research, development and deployment of technologies such as carbon capture and storage, weaken the competitiveness of emerging industries like clean energy and electric vehicles, and pose obstacles to global green trade and the sustainable upgrading of production and supply chains," Xiang said.

The "reciprocal tariffs" of the US and the economic shockwaves they generate could erode the determination of some countries and companies to pursue green transformation and investment, he said.

"They risk pushing climate change down the global governance agenda and increasing uncertainty around how countries will raise their climate ambitions and reach broader international consensus."

Agencies contributed to this story.