From Courtroom to Capital Markets: Why US Tariff Instability Matters - CleanTechnica

The article discusses the implications of the U.S. Supreme Court’s recent decision limiting presidential authority to impose broad tariffs under a specific emergency statute. While this ruling might seem to reduce tariff-related uncertainty, it has instead introduced new layers of risk and volatility in capital markets. The administration’s immediate response to continue tariffs under alternative legal authorities, combined with a refusal to refund previously collected tariffs, creates substitution and retroactivity risks. These risks complicate market pricing, affecting procurement contracts, lender conditions, and investor expectations, particularly in capital-intensive sectors like clean technology. Clean energy infrastructure—comprising steel, copper, lithium, transformers, and other long-lead components—is highly sensitive to tariff volatility because of its reliance on large upfront investments and long asset lifetimes. Increased uncertainty in trade policy raises the weighted average cost of capital (WACC), which in turn increases the levelized cost of energy (LCOE). Even small increases in WACC can make marginal clean energy projects economically unviable, slowing deployment