How Trump’s Policies Disrupted the US Offshore Wind Industry Growth

The offshore wind industry in the United States was once on the brink of significant expansion, driven by ambitious goals and supportive federal policies under the Biden administration. However, the landscape shifted dramatically with the advent of the Trump administration, which implemented measures that severely disrupted the sector’s momentum.

Shortly after taking office, President Trump signed a presidential memorandum that halted federal leasing and permitting for new wind projects both onshore and offshore. This directive effectively stopped most wind-energy development in its tracks, putting tens of billions of dollars in investments at risk and casting a long shadow of economic uncertainty over the industry.

The Trump administration’s opposition to offshore wind extends beyond policy freezes. The president has publicly criticized wind turbines, spreading misinformation about their environmental impact, such as unfounded claims about harm to whale populations. Additionally, tariffs on steel, aluminum, and European imports have increased the cost of turbine components, further straining project budgets.

These actions have led to a significant reduction in projected offshore wind capacity additions. BloombergNEF’s estimates fell by 56% after Trump’s election, with only about 17 gigawatts expected by 2035, far below the Biden administration’s target of 30 gigawatts by 2030. Projects already underway, such as the Empire Wind off New York’s coast, have faced construction halts despite having all necessary approvals, creating uncertainty for investors and developers alike.

The industry also faces challenges from potential changes to federal tax credits, which are critical for making offshore wind financially viable. House Republicans have proposed phasing down incentives established by the Inflation Reduction Act, which could deliver a "killer blow" to the sector’s growth prospects. This uncertainty compounds the existing financial and regulatory hurdles.

Despite these headwinds, some projects continue to progress. Dominion Energy’s Coastal Virginia Offshore Wind project and Ørsted’s Revolution Wind farm are advancing, with leadership committed to completion. These projects highlight the potential for offshore wind to supply clean, reliable energy to coastal population centers and critical infrastructure, including data centers with growing electricity demands.

The broader significance of offshore wind lies in its ability to provide a substantial portion of the nation’s electricity needs while reducing carbon emissions and mitigating climate change impacts. With vast coastlines and strong wind resources, the US has the potential to generate up to a quarter of its electricity from offshore wind by 2050. However, realizing this potential requires stable policies, investment confidence, and technological advancements.

The Trump administration’s actions serve as a cautionary tale about the vulnerability of emerging clean energy industries to political shifts. For stakeholders in the offshore wind sector, understanding and navigating these challenges is crucial to sustaining growth and achieving long-term climate goals.