Trump’s tariffs 'increase the uncertainty' for cleantech sector – but could present opportunities

Global business leaders and politicians on Thursday were trying to digest the impact of Donald Trump’s 20-percent tariffs on goods from the EU, while also mapping out ways to respond.

European Commission President Ursula von der Leyen called Trump’s decision “a major blow” and vowed that the EU will adopt counter measures.

“The global economy will massively suffer, uncertainty will spiral and trigger the rise of further protectionism,” Von der Leyen says. “The consequences will be dire for millions of people around the globe. … The cost of doing business with the United States will drastically increase. And what is more, there seems to be no order in the disorder. At the same time, we are prepared to respond.”

Reactions of dismay also come from major European countries.

French Prime Minister François Bayrou says the tariffs will be a "catastrophe" for both France and the US, Italian Prime Minister Giorgia Meloni called the decision "wrong" and the German Federation of Business, BDI, said it amounted to an “unprecedented attack” on global trade.

'An opportunity for Europe'

But what will the effect be on European impact startups?

Victor van Hoorn, Director at Cleantech for Europe, tells Impact Loop that it could especially hurt those companies who are in the process of scaling up their businesses.

“The latest round of tariffs on 'Liberation Day' further increase the already existing uncertainty, which is not good for either entrepreneurs or investors looking at scaling up cleantech businesses,” Van Hoorn says.

But he adds that it could also provide added incentives for Europe to move away from imported fossil fuels toward homegrown energy sources.

“We certainly see an opportunity for Europe in staying the course on climate objectives, as a beacon of stability and predictability,” he says.

Some leading climate investors also said the tariffs could have some positive sideffects -- especially for early-stage startups.

"For impact startups, this could lead to having greater access to talent when they choose not to go the US," Jane Walerud, founder of Nordic VC Walerud Ventures, tells Impact Loop.

And Lowina Lundström, CEO of InnoEnergy Scandinavia, says the current situation presents an opportunity "for Europe to build more resilience and come together."

And build stronger ties to Asian countries like Japan and South Korea.

"These are markets with fantastic opportunities, synergies and skills to develop – which means that the future of impact companies does not stand and fall with the USA," Lundström says.