President Donald Trump’s 50% tariffs on steel, aluminum, and copper could ripple through the utility sector—slowing grid projects and hiking costs, Morningstar warns. (Utility Dive)
Materials hit: With metals making up 20-30% of transmission project budgets, tariffs could tip marginal upgrades into the red. Transformer supply is especially vulnerable, since most rely on imported electrical steel.
Regulatory squeeze: Utilities may struggle to pass higher costs straight to customers. With bills already up 23% on average since 2019, regulators could stretch out recovery timelines or cap rate hikes.
Financing risk: Delays in cost recovery mean utilities may need more short-term borrowing to cover pricier projects, adding credit pressure as capex plans hit record highs.