How wind energy may fare under Trump

Summary

Marketplace Morning Report: How Wind Energy May Fare Under Trump

Release Date: July 29, 2025

In the July 29, 2025 episode of Marketplace Morning Report, host David Brancaccio delves into the future of wind energy amid the Trump administration's evolving policies. The episode, titled "How Wind Energy May Fare Under Trump," provides a comprehensive analysis of the current landscape of wind power in the United States, examining legislative changes, industry reactions, and expert insights.

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U.S. Tariffs and Wind Energy Policy Changes

David Brancaccio opens the discussion by highlighting recent developments in trade policies that directly impact the wind energy sector.

"[...] the EU agreeing that the US can apply 15% tariffs on many of its products, including cars and wind." ([01:08])

This move signifies a potential shift in the U.S.'s stance on renewable energy imports, positioning wind energy within the broader context of international trade relations.

President Trump's Stance on Wind Power

During a high-profile meeting of leaders in Scotland, President Trump made a notable statement regarding wind energy:

"We will not allow a windmill to be built in the United States." ([01:16])

This proclamation has stirred significant debate within the renewable energy community, raising concerns about the administration's commitment to sustainable energy sources.

Phasing Out Tax Credits for Wind Development

A pivotal point of discussion revolves around the new spending bill introduced under the Trump administration, which phases out tax credits for wind power development. This legislative change is poised to have profound effects on the wind energy sector:

"The new spending bill phases out tax credits for wind power development." ([01:25])

Henry Epp, Marketplace's correspondent, explains the immediate and long-term implications of this policy shift:

"The recent GOP tax bill requires new wind projects to start construction by July of next year." ([01:42])

Epp suggests that this deadline may lead to a short-term surge in wind projects as developers rush to qualify for existing tax incentives:

"We may see more wind projects get going in the short term while developers rush to sort of meet these safe harbor type activities, beginning some physical work, incurring project costs." ([01:45])

However, Epp also cautions that beyond this window, the future remains uncertain:

"In the longer term, things could get tougher, not just because of the Trump administration's policies, but because a lot of windmills have been built already over the last 20 plus years." ([01:55])

Challenges in Resource Development

Diego Espinosa, a research analyst at Wood Mackenzie, adds depth to the conversation by addressing the challenges in developing new wind resources:

"Some of the easiest, best places, best resources have already been developed." ([02:22])

He emphasizes the difficulty of scaling up wind projects at the same pace as previous decades, especially in regions where prime locations have been extensively utilized:

"It is a little harder to build as quickly with projects at the same scale as some of the ones in the past." ([02:24])

Viability of Wind Energy Without Government Support

Despite these challenges, Espinosa remains optimistic about the viability of wind energy:

"Wind energy could continue to be an attractive source of power, especially for new data centers for artificial intelligence, which need a lot of electricity." ([02:31])

This perspective is bolstered by the economic attractiveness of wind power:

"It's one of the cheapest ones, one of the fastest to connect to the grid, which could mean more investment in wind energy even without government help." ([02:35])

Market Reactions and Industry Outlook

As the episode transitions back to broader market news, David Brancaccio briefly mentions notable movements in other sectors, such as the significant drop in Novo Nordisk's stock due to competitive pressures and the major merger between Union Pacific Railroad and Norfolk Southern Railroad. However, these segments are ancillary to the primary focus on wind energy.

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Conclusion

The episode "How Wind Energy May Fare Under Trump" provides a nuanced examination of the renewable energy sector's current state amidst political and economic shifts. David Brancaccio effectively navigates through policy changes, expert opinions, and market implications to present a clear picture of what the future may hold for wind power in the United States.

For listeners seeking an in-depth understanding of the intersection between energy policy and market dynamics, this episode of Marketplace Morning Report serves as a valuable resource.

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Note: The timestamps referenced correspond to the discussed segments within the podcast transcript.

Transcript

[Marketplace Host]

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[David Brancaccio]

There's still some Wind in the sails when it comes to wind power I'm David Brancaccio in Los Angeles. We've been covering the EU agreeing that the US can apply 15% tariffs on many of its products, including cars and wind. Wind power got some attention at the meeting of leaders with wind turbines visible from President Trump's luxury golf course in Scotland. On that visit, Trump said, we will not allow a windmill to be built in the United States. The new spending bill phases out tax credits for wind power development. Marketplace's Henry Epp has more to qualify.

[Henry Epp]

For clean energy tax credits. The recent GOP tax bill requires new wind projects to start construction by July of next year. Stephen Mishagen, a consultant to climate tech companies, says that may mean we see more wind projects get going in the short term while developers rush to sort of meet these safe harbor type activities, beginning some physical work, incurring project costs. In the longer term, things could get tougher, not just because of the Trump administration's policies, but because a lot of windmills have been built already over the last 20 plus years, says Seth Feaster at the Institute for Energy Economics and Financial Analysis.

[Diego Espinosa]

Some of the easiest, best places, best.

[Henry Epp]

Resources have already been developed.

[Diego Espinosa]

It is a little harder to build as quickly with projects at the same.

[Henry Epp]

Scale as some of the ones in the past, but wind energy could continue to be an attractive source of power, especially for new data centers for artificial intelligence, which need a lot of electricity. Diego Espinosa is a research analyst at Wood mackenzie All forms of energy are needed. Wind is one of them. It's one of the cheapest ones, one of the fastest to connect to the grid, which could mean more investment in wind energy even without government help. I'm Henry AP for Marketplace Stock in.

[David Brancaccio]

Weight loss drug pioneer Novo Nordisk is down sharply to start the day down 20% now after it warned profits seem headed down amid tough competition from copycat drugs. There is confirmation this morning that the Union Pacific Railroad has reached a deal to buy the Norfolk Southern Railroad, an $85 billion merger. We're covering the logic of the deal and questions about what this does to competition. That is also the Marketplace morning podcast feed now.

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[David Brancaccio]

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Agreement involving the Rio Grande and the Colorado rivers. Mexico is supposed to send a measure of water to the US Per treaty. The US is supposed to send even more to Mexico. But there's drought and Mexico is behind on its promises, which is drawing a threat of U.S. sanctions. Will Grant filed this report for us.

[Diego Espinosa]

After 30 consecutive months without rain, the townsfolk of San Francisco, the Conchos, gather to plead for divine intervention on the shores of Lake Toronto, the reservoir behind Chihuahua State's most important dam called La Boquilla. Farmers on horseback and their families pray for a very wet rainy season. So far they've had no sign of one from its high watermark, the lake.

[Marketplace Advertiser]

Has lost 26.5 meters of depth. It's now at less than 14% of its capacity.

[Diego Espinosa]

In the congregation is Rafael Bettanze, who has monitored La Boquilla for the state water authority for 35 years, few know the lake's fluctuations as well as Mr. Betanze. And as we head out on the reservoir for a closer look, he says he's never seen the situation get this dire.

[Marketplace Advertiser]

It's impossible. We are not able to water crops. You can see that the dam lies idle, there's no hydroelectric power being generated and we can't use any water for agriculture. There just isn't enough.

[Diego Espinosa]

Despite the meager supply in Chihuahua, Mexico must abide by the Terms of a 1944 water sharing treaty with the United States. Under the agreement, Mexico must send water from the Rio Grande to Texas. In return, the US sends its own much larger allocation from the Colorado river to supply the Mexican border cities of Tijuana and Mexicali. Mexico is in arrears and has been for much of the 21st century. In April, on his Truth Social site, President Trump accused Mexico of stealing the water and threatened tariffs and maybe sanctions unless Mexico sends Texas what it owns. The thing is, the complaints from Texas are valid, but people here on the Mexican side say you simply can't take from what isn't there. People in these communities feel trapped by the terms of what they consider to be an outdated agreement which doesn't account for the ravages of climate change.

[David Brancaccio]

So this is my corn. It's about a week, 10 days off from being ready to harvest.

[Diego Espinosa]

Brian Jones, a fourth generation farmer in the Rio Grande Valley in Texas.

[David Brancaccio]

For the last three years, I've only been able to plant half my farm because I don't have enough irrigation water. We feel that Mexico has not been living up to their part of the treaty.

[Diego Espinosa]

The cross border arguments go beyond just water scarcity. They're also about agricultural methods and efficiency. Walnut trees need on average 250 litres a day. Traditionally, Mexican farmers simply flood their fields with water from the irrigation channel. As bad as the crippling drought has been for farming, the problems extend even further. The reservoir is critically low level, means the little water in it is overheating, killing the lake's marine life and with it, a once thriving tourism industry. In the face of such a litany of problems, the community around the Rio Conchos can do little besides bow their heads and pray the rain falls sometime soon.

[David Brancaccio]

Will Grant is with our editorial partners at the BBC. And there's a published report today, the Trump administration is looking at a new way of charging for patents. Not a flat fee, but a percentage between 1 and 5% of the eventual value of the invention. This is from the Wall Street Journal. A fee based on value could make the owners of the IP free for successful inventions pay much, much more. It's not a done deal here, and the paper says businesses are likely to see a new system as a tax on innovation. In Los Angeles, I'm David Brancaccio. It's Marketplace Morning Report from apm, American Public Media.

[Marketplace Host]

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