Which Energy Sectors Are Impacted by Trump’s Tariffs?

The executive order signed by the U.S. President on April 2, 2025, includes significant exemptions in the energy sector. Specifically, Trump’s tariffs exempt oil and natural gas, meaning that American LNG exports to Europe will not be affected if Europe responds with its own tariffs. Europe has increasingly relied on suppliers like the U.S., Norway, and Qatar to replace lost Russian gas supplies. Any potential tariffs on natural gas would have been catastrophic for Europe, making the exemption fortunate. However, the tariffs and any countermeasures by the EU Commission create challenges in other energy sectors. Notably, U.S.-made equipment is used in constructing natural gas and nuclear power plants, as well as electrical grids, with software also playing a crucial role. Companies such as Enphase Energy, Johnson Controls, General Electric, and Honeywell export equipment and services to Europe. Additionally, the impact of these tariffs extends to data centers, closely linked to energy consumption. As countries like Greece aim to attract related investments, it’s important to note that artificial intelligence relies on graphics cards produced in the U.S., which are a major cost component. Consequently, such investments become noticeably more expensive. Finally, Trump’s tariffs also signify a broader reshuffling of global imports and exports of energy equipment, with smaller and larger exporters attempting to fill the gap left by the U.S. in the European market.