Ørsted Faces Rising Costs from Trump Tariffs on Steel and Aluminum

Tariffs Threaten Cost Structure of U.S. Wind Projects

Danish renewable energy leader Ørsted warns that former U.S. President Donald Trump’s steel and aluminum tariffs could increase the cost of its American wind projects. In a recent Financial Times interview reported by Reuters, Ørsted CEO Rasmus Errboe emphasized the negative financial impact on flagship projects such as Revolution Wind and Sunrise Wind.

These two large-scale wind farms rely heavily on steel and aluminum components. Trump’s renewed tariff policy imposes up to 125% duties on Chinese imports, with a 10% blanket duty on most goods. Although a temporary 90-day reprieve has been granted to several countries, pricing uncertainty remains.

Errboe highlighted that Ørsted’s 11GW U.S. portfolio now faces serious headwinds due to volatile metal costs. He called on European governments to deliver stable annual funding for offshore wind, noting that policy consistency is essential to meet climate targets and avoid future delays.

Impact on Ørsted’s U.S. Wind Projects

The Revolution Wind project will generate 704MW of power for Rhode Island and Connecticut, covering over 350,000 homes once completed in 2026. Similarly, Sunrise Wind will supply 924MW to serve nearly 600,000 homes by 2027. However, rising input costs threaten both timelines and profitability.

These offshore wind developments form part of Ørsted’s broader strategy to expand in the U.S. clean energy market. The firm, which is listed on Nasdaq Copenhagen, reported DKK71 billion (€9.5 billion) in 2024 revenues and employs approximately 8,300 workers globally.

Offshore wind construction in the U.S. has slowed since Trump’s decision to freeze new leasing. This creates additional uncertainty for global operators like Ørsted.

Continued Expansion in Europe

Despite challenges in the U.S., Ørsted continues to grow in Europe. The company and Nuveen Infrastructure recently launched commercial operations at the 253MW Gode Wind 3 project in the German North Sea. This reflects Ørsted’s commitment to diversifying its wind energy portfolio and maintaining operational momentum amid regulatory pressures.

At SuperMetalPrice, we will monitor how fluctuating tariff policies impact steel and aluminum demand in global wind energy construction. Ørsted’s situation underscores the strong link between metal prices, infrastructure projects, and geopolitical decisions.