Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Economy

Trump’s Tariffs Are Here, and Financial Markets Are in Turmoil

On stock selloffs, coal production, and shipping emissions

Trump’s Tariffs Are Here, and Financial Markets Are in Turmoil
Heatmap Illustration/Getty Images

Current conditions: States left flooded from recent severe storms are now facing freezing temperatures • Firefighters are battling blazes in Scotland due to unusually warm and dry weather • Hospitals in India are reporting a 25% rise in heat-related illnesses compared to last year. Yesterday the country’s northern state of Rajasthan reached 115 degrees Fahrenheit, about 13 degrees higher than seasonal norms.

THE TOP FIVE

1. Markets in turmoil as Trump’s new tariffs come into effect

President Trump’s sweeping new tariffs came into effect at 12:01 a.m. on Wednesday, rattling the world’s markets and raising the risk of a global trade war. The levies, which include a 104% tariff on Chinese imports, triggered a mass sell-off in U.S. Treasury bonds, hiking yields as investors worry about a potential recession and flock to alternative safe-haven investments. The price of oil fell for the fifth day in a row to its lowest since 2021, with Brent futures at about $61 per barrel, well below the $65 level that oil producers need in order to turn a profit drilling new wells nationwide. As Heatmap’s Robinson Meyer explained recently, the tariffs are an outright catastrophe for the oil industry because they threaten a global downturn that would hurt oil demand at a time when oil cartel OPEC+ is increasing its output. Trump’s slate of tariffs will impact the cost of just about everything, from gasoline to e-bikes to LNG to cars. China imposed retaliatory tariffs, increasing them from 34% to 84% in response to the U.S. escalation. Meanwhile, the European Union will vote today on whether to impose its own retaliatory fees. European shares plummeted, as did Asian and Australian stocks.

As Heatmap’s Emily Pontecorvo reported today, a new study published in the journal Nature Climate Change finds that the transition to clean energy could create a world that is less exposed to energy price shocks and other energy-related trade risks than the world we have today. “We have such a concentration of fossil resources in a few countries,” Steven Davis, a professor of Earth system science at Stanford and the lead author of the study, told Pontecorvo. Transition minerals, by contrast, are less geographically concentrated, so “you have this ability to hedge a little bit across the system.”

2. Trump signs executive orders seeking to boost U.S. coal

The White House issued several executive orders on Tuesday aimed at boosting U.S. coal production and use, pointing to rising electricity demand from artificial intelligence. The series of orders direct federal agencies to:

  • revise or rescind regulations that “discriminate against coal production or coal-fired electricity generation.”
  • prioritize opening federal lands to coal mining.
  • identify a pathway for using emergency powers to stop the closure of aging coal plants and fast-track permitting for new mines.
  • investigate state policies aimed at phasing out coal.

Trump also said he plans to invoke the Defense Production Act to spur mining operations, “a move that could put the federal purse behind reviving the fading industry,” Reuters reported. Coal is the dirtiest fossil fuel, and its use has been in decline since 2007. As of last year, wind and solar combined surpassed coal for U.S. electricity generation.

3. Trump executive order targets state climate laws

President Trump signed a separate executive order on Tuesday that targets climate laws at the state level and seeks to remove threats to U.S. “energy dominance,” including “illegitimate impediments to the identification, development, siting, production, investment in, or use of domestic energy resources — particularly oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources.” The order references “state overreach” and suggests that some state and local governments are overstepping their constitutional authority in regulating energy through interstate trade barriers or fines on energy producers. It calls out New York and Vermont for their climate change superfund laws that require fossil fuel companies to pay for their planet-warming greenhouse gas emissions. And it mentions California’s carbon cap-and-trade system.

The executive order directs the U.S. attorney general to compile a list of all state and local laws “purporting to address ‘climate change,’” along with ESG, environmental justice, carbon taxes, and anything involving “carbon or ‘greenhouse gas’ emissions,” and put a stop to their enforcement. “The federal government cannot unilaterally strip states’ independent constitutional authority,” New York Governor Kathy Hochul and New Mexico Governor Michelle Lujan Grisham said in a statement. “We are a nation of states — and laws — and we will not be deterred. We will keep advancing solutions to the climate crisis that safeguard Americans’ fundamental right to clean air and water, create good-paying jobs, grow the clean energy economy, and make our future healthier and safer.”

4. Wood Mackenzie lowers 5-year U.S. wind energy outlook

Wood Mackenzie issued its annual U.S. wind energy report this week. It finds that 2024 marked the worst year for new onshore wind capacity in the past decade, with just 3.9 gigawatts installed. Through 2029, the firm expects developers to install another 33 gigawatts of onshore capacity, 6.6 gigawatts of offshore capacity, and carry out 5.5 gigawatts of upgrades and refurbishings. The five-year outlook marks “a 40% decrease quarter-on-quarter from a previous total of 75.8 gigawatts.” The report warns of enduring “uncertainty” thanks to the Trump administration’s attacks on the wind industry. “Growth will happen, but it’s going to be slower,” wrote Michelle Lewis at Electrek. “[Trump] has managed to get some projects canceled, and he’ll make things more of a slog over the next few years.”

5. Trump slams international negotiations on curbing shipping emissions

President Trump has pulled the U.S. out of international talks to decarbonize the shipping industry and vowed to reciprocate against any fees on U.S. ships, Politico reported. The International Maritime Organization's Maritime Environmental Protection Conference is unfolding this week in London, where negotiators are trying to agree on a policy to curb shipping pollution through carbon taxation. Shipping accounts for about 3% of global greenhouse gas emissions. Trump reportedly sent a letter to the conference saying “the U.S. rejects any and all efforts to impose economic measures against its ships based on GHG emissions or fuel choice. Should such a blatantly unfair measure go forward, our government will consider reciprocal measures so as to offset any fees charged to U.S. ships and compensate the American people for any other economic harm from any adopted GHG emissions measures.”

THE KICKER

“What’s next, a mandate that Americans must commute by horse and buggy?”

–Kit Kennedy, a managing director at the Natural Resources Defense Council, in response to Trump’s executive orders aimed at revitalizing the U.S. coal industry.

Yellow

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Adaptation

This New Wildfire Risk Model Has No Secrets

CarbonPlan has a new tool to measure climate risk that comes with full transparency.

A house and flames.
Heatmap Illustration/Getty Images

On a warming planet, knowing whether the home you’re about to invest your life savings in is at risk of being wiped out by a wildfire or drowned in a flood becomes paramount. And yet public data is almost nonexistent. While private companies offer property-level climate risk assessments — usually for a fee — it’s hard to know which to trust or how they should be used. Companies feed different datasets into their models and make different assumptions, and often don’t share all the details. The models have been shown to predict disparate outcomes for the same locations.

For a measure of the gap between where climate risk models are and where consumers want them to be, look no further than Zillow. The real estate website added a “climate risk” section to its property listings in 2024 in response to customer demand only to axe the feature a year later at the behest of an industry group that questioned the accuracy of its risk ratings.

Keep reading...Show less
Yellow
AM Briefing

Endangered Finding

On BYD’s lawsuit, Fervo’s hottest well, and China’s geologic hydrogen

Lee Zeldin.
Heatmap Illustration/Getty Images

Current conditions: A midweek clipper storm is poised to bring as much as six more inches of snow to parts of the Great Lakes and Northeast • American Samoa is halfway through three days of fierce thunderstorms and temperatures above 80 degrees Fahrenheit • Northern Portugal is bracing for up to four inches more of rain after three deadly storms in just two weeks.


Keep reading...Show less
Red
Studying wildfire.
Heatmap Illustration/Getty Images

There were 77,850 wildfires in the United States in 2025, and nearly half of those — 49% — ignited east of the Mississippi River, according to statistics released last week by the National Interagency Fire Center. That might come as a surprise to some in the West, who tend to believe they hold the monopoly on conflagrations (along with earthquakes, tsunamis, and megalomaniac tech billionaires).

But if you lump the Central Plains and Midwest states of Minnesota, Iowa, Missouri, Arkansas, Oklahoma, and Texas along with everything to their east — the swath of the nation collectively designated as the Eastern and Southern Regions by the U.S. Forest Service — the wildfires in the area made up more than two-thirds of total ignitions last year.

Keep reading...Show less
Yellow