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Rob and Jesse talk with former Ford economist Ellen Hughes-Cromwick.

Over the past 30 years, the U.S. automaking industry has transformed how it builds cars and trucks, constructing a continent-sized network of factories, machine shops, and warehouses that some call “Factory North America.” President Trump’s threatened tariffs on Canadian and Mexican imports will disrupt and transform those supply chains. What will that mean for the automaking industry and the transition to EVs?
Ellen Hughes-Cromwick is the former chief economist at Ford Motor Company, where she worked from 1996 to 2014, as well as the former chief economist at the U.S. Department of Commerce. She is now a senior visiting fellow at Third Way and a senior advisor at MacroPolicy Perspective LLC.
On this week’s episode of Shift Key, Rob and Jesse chat with Ellen about how automakers build cars today, why this system isn’t built for trade barriers, and whether Trump’s tariffs could counterintuitively help electric vehicles. Shift Key is hosted by Jesse Jenkins, a professor of energy systems engineering at Princeton University, and Robinson Meyer, Heatmap’s executive editor.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
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Here is an excerpt from our conversation:
Jesse Jenkins: I hear often that we’re also sending parts back and forth as well — that particularly near the border with Canada, we have manufacturing parts suppliers on both sides of the border. So it’s not just the final car, it’s also pieces of the car going back and forth. How does stuff move around in this sort of complicated trade network between, Canada, the U.S., and Mexico?
Ellen Hughes-Cromwick: There is a lot of back and forth, and as you mentioned, a lot of the automotive analysts track the travel of not just the vehicles, but the parts. And the latest estimates show that in some cases, we’re going back and forth across the Ambassador Bridge here in Detroit, you know, six, eight times.
So when you say all of a sudden, as of tomorrow, I’m going to put a 25% tariff on that — I mean, that basically shutters businesses. You can’t absorb a 25% hit, especially if it’s a part or an assembled vehicle. Part of that 25% you could probably absorb, but for the thin margins that parts suppliers work for day in and day out, I mean, there’s just no way. You’re better off shuttering your business. I hate to say that, but you know, you just can’t make the equation work, with a 25% hit.
Jenkins: So this is hypothetical structure, I don’t know if this is exactly right, but so you might have engine parts manufactured in Michigan being sent to Windsor, Ontario to assemble an internal combustion engine. And then it goes back to a plant somewhere else in the U.S. to be assembled into a vehicle. Maybe you get the glass from somewhere for the windows, you know, these are all moving back and forth on a regular basis after so many years of free trade agreements between the two countries, or the three.
Hughes-Cromwick: That’s right. That’s right. And again, coming back to Michigan, because we’re so close to the suppliers in Canada, and we have the lion’s share of automotive suppliers, especially small and mid-size suppliers — so the tier two, tier three. They’re supplying to a tier one big supplier like Magna or Borg.
So you’ve got a lot of these tier two, tier three suppliers in Michigan. Well, why? Because they’re getting a part from a Canadian supplier, putting it into theirs. And maybe that’s a component that goes into an internal combustion engine that’s being produced.
This episode of Shift Key is sponsored by …
Download Heatmap Labs and Hydrostor’s free report to discover the crucial role of long duration energy storage in ensuring a reliable, clean future and stable grid. Learn more about Hydrostor here.
Music for Shift Key is by Adam Kromelow.
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Even the hardiest are shivering at the price of heating oil.
As leaves begin to turn from green to autumn hues of amber, gold, and brown, New England is preparing for an expensive winter.
While most of the country heats their homes with natural gas or electricity, about 5 million households — overwhelmingly located in the Northeast — use oil. Like diesel and gasoline (both of which have set price records recently) home heating oil is distilled from crude oil, which is currently trading at prices not seen since the early months of the war between the United States, Israel, and Iran.
Benchmark oil prices are over $100 for the first time since the spring as the Iran War grinds forward with no end in sight. Houthi attacks on Saudi oil tankers and infrastructure in and around the Red Sea and continued Ukrainian drone strikes on Russian refineries have put added pressure on U.S. facilities to supply the world with gasoline, jet fuel, and diesel, raising prices domestically. Russia’s own fuel imports reached a record 172,000 metric tons in August, according to an analysis from the Centre for Research on Energy and Clean Air, mostly from South Korea and India, putting further strain on the global market (the country was once the largest exporter of refined products).
The effects have trickled downstream to the distillate market, as well. Diesel prices surged past $6 per gallon on Friday, while retail home heating oil prices in Maine, one of the Northeastern states most dependent on oil to heat homes, are around $5.39, their highest since April. Making matters worse, stocks of distillate fuel oil, which includes heating oil, are at their lowest level for this time of year since the Energy Information Administration started keeping records. The EIA released a new forecast this week projecting that “global production of distillate fuel will remain below last year’s levels in the coming months, contributing to low U.S. diesel inventories and high diesel prices.”
For Mainers and others across New England, that adds up to a hard winter to come.
“As the most heating oil reliant state in the country, Mainers are uniquely impacted by rising and volatile oil prices,” Acting Commissioner of the Maine Department of Energy Resources Celina Cunningham told me in an emailed statement. About half of the state’s residents “still rely on oil as their primary heating fuel,” she told me, even as outgoing Governor Janet Mills has encouraged heat pump adoption. “The cost of heating oil is already more than 60% higher than it was at this time last year,” Cunningham added, “putting added pressure on Maine households as we head into the winter heating season.”
Mark Wolfe, executive director of the National Energy Assistance Directors Association, told me that the total cost of heating a home exclusively on oil will jump from $1,740 to $2,297 this winter. “Families using heating oil will get hit twice — first from gasoline, and then heating oil,” he said.
The price of home heating oil has long been a hot button issue in New England politics, and this year’s slate of Congressional races is no exception. Matt Dunlap, the state auditor and Democratic nominee in Maine’s Trump-voting 2nd Congressional District, told reporters earlier this week while standing in front of a heating oil delivery truck that “right now, families across this district are sitting at their kitchen tables signing their heating oil contracts for the winter and staring at numbers they simply cannot afford.” In keeping with Trump’s recent admonition to pretend he’s on the ballot, Dunlap used the occasion to criticize the president’s foreign policy. The Iran War, Dunlap said, “is not an abstract foreign policy debate. That’s the reason your heating bill this winter could be hundreds of dollars higher than it was last year.”
Susan Collins, the Republican senator running for re-election in Maine, regularly highlights her role in bringing in funding from the Low-Income Home Energy Assistance Program for Mainers, even as staff in charge of administering the program were laid off early in the Trump administration.
To the extent New Englanders can expect any relief, it likely won’t come from the supply dynamics of heating oil — the EIA has upped its price forecast for both this year and 2027. They may, however, simply need less. Thanks to what could be an historically strong El Niño, New England may be in for a warmer (albeit wetter) winter than usual.
Talking about the data center backlash, the midterm elections, and the future of renewables with Columbia Law School’s Romany Webb.
This week’s conversation is a quick catch-up with our friends at Columbia Law School’s Sabin Center for Climate Change Law. I hopped on the phone with the center’s deputy director Romany Webb to chat about recent updates they published to anti-renewables opposition analysis. I wanted to dig into their research beyond the toplines — what should people care about in the coming election? How have data centers come up in their research? Or the repeal of the Inflation Reduction Act?
The following conversation was lightly edited for clarity.
Let’s start with the updates. Walk me through what’s new in your research.
So, we published two-year reports that detail renewable energy opposition across the United States; one is our report we’ve published since 2021 and it’s a new edition, and the other is an update of a report we published a few years ago on false claims about renewable energy where we highlight the misinformed used against projects.
This year’s local opposition report found local opposition continues to be widespread and really endemic. There’s been opposition to renewable energy development in every state across the country and we’re seeing it still have a real impact on whether projects get built. But there are small glimmers of hope. We identified 70 new state and local restrictions, which was a decline from previous years — that’s notable.
In select states where there have been a lot of these local restrictions, we’ve seen a drop off, like in Michigan after they enacted their state siting law. These are encouraging signs, and obviously it’s still early days, but it shows some of these state reforms are having a positive impact.
How is data center opposition coming up in your research?
Our reports do not track opposition to data center development. But we do certainly hear anecdotally that debates over data center development are spilling over into debates over renewable energy and battery storage. Often, local communities express concern that these new projects are just being built to power data centers — in some cases when there’s no connection at all, really. But I don’t have data on that link.
You said the law Michigan enacted might be working. Do you know if these laws limiting local opposition actually help with fighting renewable energy opponents, or are they engendering their own backlashes that undermine their effectiveness?
I think it’s too early to say the impacts they’ll have over the medium to long term. In the near term, many of the laws have been successful in accelerating the permitting of renewable energy projects or making it easier for them to be approved. Recent data out of New York shows that many of the projects that have gone through the new siting process are being approved — they’re still fairly long but they’re consistent which is good for development. In other places we’ve seen efforts to limit local government’s ability to adopt restrictions on renewable energy development, like Illinois and Michigan.
Those laws are relatively new, but the data we have shows that drop-off. It suggests the intended effect. But we need more time to know how effective they are and some of those laws have been getting quite a bit of pushback. There’s been a myriad of bills enacted in state legislatures across the country that would roll back those recent reforms or impose new restrictions on renewable development.
How much does the coming midterm election matter for the future of opposition to renewable energy?
I do think the next election will have important implications on whether we continue to see the ever-growing number of state level restrictions adopted or if we see a shift there.
Even if we see a shift in the composition of legislatures, I do think we’ll continue to see community opposition in many places to these projects. We shouldn’t ignore that developing a solar or wind project does have impacts on the local community and so developers really need to take steps to mitigate and manage those impacts.
If they don’t they’ll face the opposition, and even if they are they may face it because of misinformation around these projects.
My last question is, to what extent did the repeal of the IRA impact the ability for local opposition to kill projects in the crib?
I can’t say that definitively. I certainly don’t have the data that would support that sort of claim. And we don’t track that, specifically.
But often, groups that are opposed to renewable energy development will express concerns about the costs of projects or emphasize projects may not be viable without government subsidies. So the rollback of tax credits under the IRA plays into that argument. Of course when you look at the data, renewable energy projects are cheaper and the argument doesn’t hold muster.
But it’s an argument we regularly see pushed by opposition groups. That is how we have seen the IRA repeal affect this.
A developer sues an Arkansas paper, plus more of the week’s biggest development fights.
1. Pulaski County, Arkansas – A major utility sued the biggest newspaper in Arkansas over reporting on a data center energy deal. It’s a crucial case to follow.
2. Lackawanna County, Pennsylvania – Speaking of hardcore legal strategies, have you ever heard of a data center developer asking every local official to recuse themselves?
3. Loudon County, Virginia – Data Center Alley is giving us our first real glimpse of what data center legislating could look like if Democrats control at least one chamber of Congress.
4. Lane County, Oregon – The second largest city in Oregon is now turning down data centers, just as the governor starts saying no to anything on state land.