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NEMA Responds to Trump Administration's Tariff Policies

April 3, 2025
The electric utility industry faces uncertainty as Trump Administration's tariff policies unfold. NEMA calls for collaboration to safeguard the U.S. electrical system and domestic manufacturing.

The electric utility industry is closely monitoring the latest tariff policies introduced by the Trump Administration, as concerns grow over potential disruptions to supply chains and infrastructure projects. The National Electrical Manufacturers Association (NEMA) has responded with a call for collaboration to safeguard the stability of the U.S. electrical system and support domestic manufacturing.

In a statement following Trump’s announcement of a universal 10% tariff on imports, NEMA President and CEO Debra Phillips emphasized the critical role that electrical manufacturers play in the nation’s economy. She highlighted that since 2018, the industry has invested over $185 billion in domestic production, creating thousands of jobs and bolstering the availability of key electrical products.

"The electroindustry has one of the most complex global supply chains of any sector," Phillips stated. "We urge the Trump Administration to prioritize business certainty, U.S. competitiveness, and realistic transition periods for moving key supply chains. Minimizing the impact on critical manufacturing sectors is essential to maintaining a secure and reliable grid."

The electrical manufacturing industry is a major contributor to U.S. trade, ranking as the second-largest exporter and importer of manufactured goods. With the North American electrical system serving as a backbone for economic growth and infrastructure development, industry leaders stress the need for trade policies that enable continued investment in U.S. manufacturing and energy production.

It has been difficult, if not impossible to predict the effect of tariffs on the power delivery industry; uncertainty has been the norm as far as that goes. News articles from January and February are already outdated, as some tariffs that were threatened did not take effect, or there has been uncertainty in whether certain commodities or goods qualified and at what rate. However, yesterday Trump announced a 10% "baseline" tariff on imports to the U.S. Sixty countries are to be hit with higher rates of up to 50%, while countries in the European Union face a 20% tariff. The tariffs are set to take effect April 5 on some, and April 9 on the rest. Trump also confirmed previously announced tariffs on specific goods, including 25% on steel and aluminium. 

Despite these challenges, NEMA remains committed to strengthening domestic production through its "Make It American" initiative. This program aligns with the Build America, Buy America Act, aiming to ensure that manufacturers can confidently produce compliant electrical goods while supporting American workers and communities.

"The electroindustry supports the Trump Administration’s objectives to strengthen the U.S. energy system and expand our manufacturing base," Phillips added. "We encourage collaboration to develop trade policies that align with these goals while ensuring the continued reliability of our power infrastructure."

As electric utilities navigate these evolving trade dynamics, industry stakeholders will continue advocating for policies that balance economic growth with grid modernization and energy security. The coming months will be critical in determining how utilities, manufacturers, and policymakers work together to address these pressing challenges.

About the Author

Nikki Chandler | Group Editorial Director, Energy

Nikki has 28 years of experience as an award-winning business-to-business editor, with 23 years of it covering the electric utility industry. She started out as an editorial intern with T&D World while finishing her degree, then joined Mobile Radio Technology and RF Design magazines. She returned to T&D World as an online editor in 2002 and now leads the content for EnergyTech, Microgrid Knowledge and T&D World media brands and supports Endeavor’s energy events, Microgrid Knowledge and T&D World Live. She has contributed to several publications over the past 25 years, including Waste Age, Wireless Review, Power Electronics Technology, and Arkansas Times. She graduated Phi Beta Kappa with a B.S. in journalism from the University of Kansas.

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