Trump’s tariffs are about to drive up the cost of clean energy projects in the US, and energy storage is set to take the biggest hit, according to new analysis from Wood Mackenzie.

In its latest report, “All aboard the tariff coaster: implications for the US power industry,” Wood Mackenzie lays out what the power sector could be in for as new tariffs raise costs across the board. The biggest tariff hit will be on utility-scale energy storage, where US projects still overwhelmingly rely on imported battery cells from China.

“In a business with 5-to-10-year planning cycles, not knowing what a project will cost next year or the year after is disruptive and causes massive uncertainty,” said Chris Seiple, vice chairman of power and renewables at Wood Mackenzie. “We will definitely see impacts on power sector capital projects. The severity depends on what scenarios play out.”

The firm modeled two scenarios: one where tariffs settle at an effective rate of 10% by 2026, and a more extreme “trade war” scenario where that rate climbs to 30% and stays there through 2030. Either way, energy storage takes a big hit.

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Wood Mackenzie estimates energy storage project costs could rise from 12% to over 50%, depending on the scenario. That’s because, in 2024, nearly all utility-scale battery cells used in the US came from China. And the domestic supply is nowhere near ready to take over.

“While US battery cell manufacturing capacity is expanding, it is not expanding at a pace nearly fast enough to meet even a small fraction of battery projects in the US,” Seiple said. “In 2025, we estimate there is sufficient domestic manufacturing capacity to only meet about 6% of demand, and by 2030, domestic manufacturing could potentially meet 40% of demand.”

The solar sector is getting a rough deal, too. With existing tariffs and tough interconnection rules already making solar builds more expensive in the US, new tariffs would pile on. Wood Mackenzie says utility-scale solar could end up 54% more expensive than in Europe, and a staggering 85% pricier than new solar plants in China.

“An increase in tariff levels will only worsen this premium US energy consumers need to pay to access renewable energy,” Seiple said.

Wood Mac’s bottom line: Current trade policies are making clean energy more expensive to build in the US than almost anywhere else, and the industry will have to brace for more uncertainty and higher costs ahead.

Read more: Audi may build EVs in the US to dodge Trump’s new tariffs

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Acura isn’t really known as a luxury EV brand, but with over $20,000 in discounts, it’s hard to say no. Honda’s Acura is quietly selling more EVs in the US, but how long will the savings last?

Acura is selling more EVs in the US with big discounts

After selling an additional 1,873 ZDX models last month, Acura has now sold over 9,000 electric vehicles (EVs) in the US through May.

Although it may not seem like much compared to some, like Tesla, Acura just launched the ZDX in the US in May 2024.

The ZDX nearly outsold Honda’s electric SUV in the month of May. Honda sold 2,110 Prologues last month, up from 612 units sold the previous year. The Prologue quickly became a top-selling EV in the US last year, with over 33,000 models sold. Through May, Honda has sold over 13,500 electric SUVs.

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To give you a better idea, Cadillac sold 4,300 Lyriqs (which is built on the same platform) in the first quarter. Acura sold 4,813 ZDX models during the same period. Through May, Acura has sold a total of 9,017 EVs in the US.

After setting a new sales record in March wth 1,935 units, Acura topped it in April, selling another 2,331 ZDX models.

ZDX sales are significantly higher than the automaker had projected in February. Mike Langel, vice president of national sales for Acura, told Automotive News that the company expected to sell around 1,000 ZDX models a month this year.

Langley added, “We can only drive the market so much by incentives, and that’s where we have to remain flexible in our approach.”

Acura is currently offering nearly $30,000 in lease cash on the 2024 ZDX in some states, making it even more affordable than a Honda CR-V Hybrid. Through June 30, Acura is offering leases as low as $299 for 24 months with $2,999 due at signing.

Honda introduced new incentives on the 2025 Prologue last month, enabling up to $16,500 in savings. If you can find one, Honda is still offering leases as low as $239 for 36 months with $1,399 due at signing. The offer is available in California and other ZEV states.

Trump’s new “Big, Beautiful Bill” will kill off many of the incentives, including the $7,500 EV tax credit. Under the bill, many of these savings will disappear.

Looking to score some savings while they are still here? We’re here to help you get started. You can use our links below to find deals on the Honda Prologue and Acura ZDX in your area.