US opens national security probe into wind turbine imports; move may impact India Energy Watch
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US opens national security probe into wind turbine imports; move may impact India

US launches national security probe into wind turbine imports under Section 232, raising risks of higher tariffs and impact on Indian exports

Shalini Sharma

New Delhi: The United States (US) has launched a national security investigation into imports of wind turbines and their components, a move that could pave the way for even higher tariffs on the sector and create ripples for exporters, including India. According to a notice from the US Department of Commerce, the investigation was formally initiated on August 13 under Section 232 of the Trade Expansion Act of 1962 to examine whether foreign imports of wind turbines threaten US national security.

The Bureau of Industry and Security has invited public comments on issues such as the role of foreign supply chains, concentration of imports from a small number of countries, the impact of foreign subsidies, and the risks of predatory trade practices.

The Commerce Department has also flagged potential national security risks from foreign control over the wind supply chain and the possibility of foreign-built turbines being “weaponised” through their attributes or components.

Tariffs already in place

The probe follows an earlier announcement this week that wind turbines would be included in the list of products subject to a 50 percent tariff on their steel and aluminum content. The Section 232 review could serve as the basis for even steeper duties on imported turbines.

The Biden administration had taken steps to promote renewables, but since returning to office in January, US President Donald Trump has moved to slow down wind and solar deployment, calling them costly, unreliable, and overdependent on Chinese supply chains. On his first day in office, he suspended licensing for offshore wind projects.

Implications for India

India’s wind turbine and component makers, who have been exploring export markets in North America, could face a setback if the US imposes broader curbs following the investigation. India was the largest wind equipment exporter to the US in 2022, with estimated exports valued at USD 518 million.

The tariffs and national security probe come at a time when global wind supply chains are under stress from high costs, inflation, and logistical bottlenecks. For India, which is simultaneously ramping up domestic renewable capacity and building an export base for clean energy equipment, restrictive US trade measures could shrink market access and limit opportunities for growth.

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Industry at a crossroads

While the US Commerce Department has stressed that it is seeking industry views before deciding further action, the notice underscores the growing use of Section 232 to examine a wide range of imports — from semiconductors and pharmaceuticals to heavy trucks, drones, and now wind turbines.

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