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Rob and Jesse assess the climate geopolitics of Trump’s latest trade moves.
Donald Trump has implemented what is easily the most chaotic set of American economic policies in recent memory. First, the U.S. declared a trade war on the entire world, imposing breathtaking tariffs on many of the country’s biggest trading partners. He’s paused that effort — but scaled up punitive tariffs on China, launching what would be the 21st century’s biggest global economic realignment without any apparent plan. Now Trump says that more levies are coming on semiconductors and pharmaceuticals, no matter where we get them.
All of this is a disaster for the U.S. economy — but it’s also ruinous for any potential American role in decarbonization or the fight against climate change. Even more than Trump’s deregulatory actions, his trade war could spell the end of a long-held U.S. decarbonization dream.
On this week’s episode of Shift Key, Rob and Jesse chat about what Trump’s chaotic economic policy could mean for the global fight against climate change. What happens to global decarbonization if the U.S. no longer participates? If the U.S. kills its research sector, what happens next? And could China seize this moment to expand its clean tech sector? 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.
You can also add the show’s RSS feed to your podcast app to follow us directly.
Here is an excerpt from our conversation:
Jesse Jenkins: Just to put a pin in the second point you raised, too, on finance — this is such, I think, a critical piece of the potential role, as you said, of the United States and others in influencing development paths in emerging economies. In many cases, the sovereign risks of those markets — the risks related to the potential lack of rule of law or presence of corruption or currency risk and uncertainty or fiscal risk, other things that characterize these environments that, in contrast typically, historically, at least, to the United States and its stability — lead to higher financial costs for everything in these countries, whatever you’re trying to build. And since so many components of the clean energy transition are capital intensive assets — investing in a wind farm, or a solar farm, or manufacturing capacity, or new low-carbon steel production, these all require huge amounts of upfront capital investment.
And so if the U.S. and other international partners can help lower the interest rates and costs of financing that are needed for deployment of these technologies abroad, that has a pretty substantial influence on the actual competitiveness or relative competitiveness of this infrastructure and the ability of emerging economies to afford to deploy it. So that’s one of the kind of key levers that I think is often underappreciated in this stor, and I appreciated that you called that out.
Robinson Meyer: And I would say historically, it’s also something we’ve totally underperformed. It’s a hugely important lever, and it’s also something that Republican and Democratic administrations alike — Republican more than Democratic, but both kinds of administrations have really not contributed enough to the financial cause, here. And so the argument is that the Trump administration, with its broad array of policies, but also with this specific reckless, unplanned, and pretty idiotic trade war that it’s begun in the past two weeks, has undermined all of those advantages for the United States and undermined America’s ability to play any of those roles in a global context.
I would add to all of this that I think there’s another part of the story that I hint at, but don’t go into, which is that obviously the U.S. has withdrawn again from the Paris Agreement, or is in the process of withdrawing again from the Paris Agreement. Beyond Paris alone, climate change is a public problem for the world. It’s a problem of the global public. That’s not the only kind of problem it is — it’s also a developmental problem, as we’ve been discussing. But it is generally higher on the Maslow Hierarchy of Needs for governments than other things they might need to attend to. And so addressing climate change is only possible in a world that is peaceful, rule-following, generally ordered by norms and something approaching laws, rather than a simple imperial prerogative. And of course, the Trump administration’s actions — not only in this trade war, but also over the course of a few months — have been disastrous for that. I think that’s worth stipulating going forward.
Part of what I was trying to do with this piece was, we know that Donald Trump is waging war on the regulatory state. We know that he’s waging war on international climate treaties, and people are very used to thinking about that. But I think understanding this most recent imbecilic action, this trade war that he’s launched against the entire world and then kind of focused on China, also massively undercuts any kind of climate action. And we should be unafraid to say that — at least any kind of climate action that the United States would play a role in.
Music for Shift Key is by Adam Kromelow.
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There is one area where China depends on U.S. imports: the building materials for plastics.
While much of the focus of President Donald Trump’s trade war has been on the United States’ yawning trade deficit with China, the U.S. does have considerable exports going the other way — agricultural products like soybeans, technology products like semiconductors, and fossil fuels and petroleum products.
Those exports are not just actual crude oil, but also petrochemical feedstocks, which are a key input for China’s industrial production and represent a rare area of Chinese dependence on the United States.
To the extent this trade is imperiled by 125% tariffs on U.S. imports to China, put in place after the U.S. applied 145% tariffs to Chinese imports, it will be yet another example of how Trump’s second term could prove ironically disastrous for the oil and gas industry — first by making its inputs more expensive, then by helping sink oil prices, and now by inducing large taxes on American exports.
One of those feedstocks is ethane, which is extracted from natural gas. The U.S.-China ethane trade is relatively new — the first U.S. ethane ship left Morgan’s Point, Texas in 2019. Since then, annual U.S. exports to China have increased from just under 4 million barrels to 83 million barrels in 2024, according to the U.S. Energy Information Administration. U.S. feedstock exports to China have grown up alongside China’s petrochemical industry, to the point where analysts at S&P Global have warned of “overcapacity.”
“The speed and scale of the expansion of China’s petrochemical sector dwarfs any historical precedent,” wrote the International Energy Agency in 2023, noting that planned production capacity increases in China since 2019 for ethylene and propylene were set to match all production capacity in Europe, Japan, and Korea combined.
The U.S.-China trade in petrochemical feedstocks had, until this year, represented the strengths of each respective economy working in sync to buoy global manufacturing. U.S. production of ethane and other liquids had soared thanks to the fracking boom. In turn, China invested heavily in its capacity to process these fuels and churn out plastics for use across its economy — and often in exports back to the United States.
I reached out to a number of companies involved in ethane and propane exports, as well as trade groups for the oil and gas industry to talk about how tariffs are affecting their business. None of them responded.
But it is safe to say that business could soon be starved of key inputs.
“U.S. energy flows to China are done unless Beijing and D.C. come to an agreement,” Gregory Brew, an analyst at the Eurasia Group, told me. “China is already looking to buy more crude from OPEC states to make up for losing U.S. [imports]. NGLs are sure to follow.”
Those “NGLs”, a.k.a.natural gas liquids, including ethane, propane, and butane, are produced as a byproduct of oil and gas drilling and processing and are often used as feedstocks for making plastics. Ethane is converted into ethylene by a high-heat process known as “cracking,” then converted into polyethylene pellets, which find their way into many of the plastic products we use every day. A similar process turns propane, which can be derived from natural gas or crude oil, into polypropylene.
This growing mutual dependence has involved enormous capital investments in both the United States and in China to develop pipeline, storage, cooling and shipping infrastructure. The Chinese ethane processing industry was set to receive some $16 billion in new investment to import and process the gas, Reuters reported in February, while U.S. energy companies were working to expand their export capacity.
When an analyst asked James Teague, the co-chief executive of major pipeline company Enterprise Product Partners, in February about the prospect of tariff retaliation affecting exports to China, Teague noted confidently “those crackers can only use ethane,” and so “from an NGL perspective, I’m not worried.”
The ethane trade is a kind of mirror image of how U.S.-China trade is often thought of. Instead of America depending on China for batteries or rare earths, when it comes to ethane, it’s China that depends on the United States.
Almost half of all United States ethane exports went to China in 2023, according to EIA data, while the analytics firm Kpler put the portion of ethane exports in 2024 to China at 57%, according to figures cited by Reuters. “The United States represented practically all of China’s imports of the feedstock over the past seven years,” the news service reported.
“Chinese petrochemical crackers that use ethane as a feedstock rely exclusively on U.S. volumes,” according to the trade publication RBN Energy. “The tariffs will make U.S. ethane uneconomical, and these facilities will face two choices: absorb the cost or shut down.”
That risk goes both ways: “We see an increasing risk to U.S. export volumes,” wrote Citi analyst Spiro Dounis in a note to clients last week. “Both countries are heavily dependent on each other when it comes to NGLs and tariffs throw a significant wrench into the relationship.” That leaves Chinese importers of ethane with the grim choice of “either shutting in capacity or running at a loss.”
There’s likely a similar story playing out with propane and propylene. Propane exports to China have grown to over 114 million barrels in 2024, compared to just over 6 million 10 years prior, according to EIA data.
The price of propane in the United States has “plummeted” since China imposed its retaliatory tariffs, according to Bloomberg, while Chinese importers of the fuel are “getting gouged by traders taking advantage of their distress.”
“China … will face higher costs and potential shutdowns of [propane dehydrogenation] plants due to increased procurement costs and reduced downstream demand,” Drewry analyst Nisha Manav told me in an email. “This could lead to demand destruction in the country due to reduced operating rates at PDH plants. Alternatively, the U.S. will struggle to find alternative markets, leading to inventory build-ups and lower export opportunities.”
The EIA called our propane specifically in its most recent short term energy outlook, released this month. “We expect that China’s retaliatory tariffs on U.S. goods will have the largest effect on propane,” the report’s authors said. That will likely lead to increased inventories of propane in the United States and lower prices domestically.
While they’re confident in the accuracy of this year’s predictions, the future looks a lot murkier.
Buoys have it tough.
Built to endure some of the harshest conditions on the planet, the instruments are thrashed by ocean waves, buffeted by high winds, corroded by sea salt, and scorched by the sun’s ultraviolet rays. Their measurements on everything from solar radiation to seawater salinity, barometric pressure, and the still-alarmingly-warm water temperatures in the Gulf of Mexico (by any other name) provide crucial information for the experts making forecasts for weather patterns like the El Niño and the Southern Oscillation variations, which have impacts felt around the world. The buoys also provide life-or-death data used to make informed forecasts for the 60 million Americans living in the Atlantic and Gulf regions — i.e. those most vulnerable to hurricanes.
The job of maintaining the government’s more than 200 moored buoys across the Pacific and Atlantic basins falls to the National Oceanic and Atmospheric Administration’s National Data Buoy Center, based out of southern Mississippi. Like many teams at NOAA, the NDBC consists of a small group of oceanographers, computer scientists, engineers, and meteorologists that play an outsized role in shaping our understanding of what’s happening in the ocean. Also like many teams at NOAA, it has been hit hard by the Trump administration’s sweeping layoffs and buyouts. Of its 34 full-time employees, the NDBC had already lost three as of March 1, while the fate of another 120 contract employees — who help keep the buoys maintained and operational — is in limbo. “Hopefully it won’t get to the point where [the system] kind of falls apart,” one engineer who retired this year worried to The Columbian.
Against this bleak backdrop, independent forecasters have begun to release their predictions for the 2025 hurricane season. Groups like Colorado State University’s Department of Atmospheric Sciences and the media company AccuWeather, which publish highly regarded outlooks every April, rely almost entirely on data from NOAA’s buoys, satellites, and weather stations.
“NOAA is critical,” Levi Silvers, a research scientist and a co-author of CSU’s 2025 outlook, told me. “If you look back 20 or 30 years ago, we didn’t have nearly as many buoys out there. That meant forecasters “couldn’t really tell how deep the warm or cool layers of the Pacific went,” which led to more unpleasant surprises, he said. “We can see that now because of the buoys from NOAA.”
This year, government-provided data informed CSU’s forecast of 17 named storms in 2025, as well as AccuWeather’s prediction of 13 to 18 named storms. Both groups’ forecasts are slightly lower than their 2024 predictions, although Silvers stressed that the dip shouldn’t be the emphasis. “It’s still above normal,” he said, noting that the average number of named storms between 1991 and 2020 was fewer than 15. “I hope that people don’t get the impression that it’s a below-average season because it’s less than last year.”
Paul Pastelok, AccuWeather’s head of long-range forecasting, likewise told me that while water temperatures aren’t as warm in the Atlantic basin’s main development area as last year, they’re still pretty close. Hurricanes primarily draw their power from heat at the sea’s surface, so early season temperature readings can tip off forecasters to increased storm activity. There is no reason to write off the possibility of another storm as powerful as Hurricane Milton making U.S. landfall this year. (AccuWeather predicts three to five Category 3-strength or higher storms this year, while CSU expects four.) The potential for rapid intensification — where a storm significantly increases in wind speed over a period of 24 hours or less, as we saw with last year’s Hurricane Beryl — also remains.
Pastelok was particularly alarmed by the numbers NOAA has reported in the Gulf, which could mean a lot of “homegrown activity.” “In the past, we’ve seen these long-track systems coming off the African coast that can produce some big storms — Category 4 or 5 — but we have time to react and see where they’re going to go,” Pastelok said. “It’s the ones that develop closer to the county that could catch people off guard.”
Pastelok added that AccuWeather hasn’t had any issues receiving NOAA data, and he isn’t worried yet about continuing to obtain quality data to tweak their predictions, including potentially accounting for a late-season La Niña, a pattern typically conducive to more hurricanes. Silvers sounded less sure: “I don’t think people realize how much work it takes to get information from a satellite or a buoy to make a picture in your computer,” he said. “It has to be collected, and there’s a huge process of quality control, where we have to make sure the data is good.” NOAA has — or at least had — many employees doing the “grueling, tedious, computer-science-type work” to provide good data to hurricane forecasters.
NOAA’s National Hurricane Center also provides its own forecast of named storms, which is usually released just before the June 1 start of the season. In response to my emailed questions about how the administration’s layoffs may affect NHC’s forecasting capabilities, a communications officer reiterated the agency’s policy of not discussing internal personnel matters or engaging in speculative interviews. She added, however, that NOAA “remains dedicated to its mission, providing timely information, research, and resources that serve the American public and ensure our nation’s environmental and economic resilience.”
Other branches of NOAA responsible for observations and communications related to hurricanes also appear to be in trouble. Mission-critical flight directors for the Hurricane Hunters, who measure the intensity of developing storms by flying through the eyewall, have been among those laid off by the agency, reducing NOAA’s aviation capacity by 25%. The National Weather Service has also indefinitely suspended its extreme weather alerts in languages other than English — including Spanish, which is spoken at home by 20% of Floridians and nearly 30% of Texans. And while NOAA noted to me that its Weather Prediction Center, National Water Center, and National Weather Service offices around the country issued a “rare coordinated NOAA news release” ahead of last year’s devastating Hurricane Helene, that kind of inter-department cooperation and messaging gets harder as the contact information of former point-people goes dark and one-time colleagues are no longer around to answer a call.
For now, at least, the 2025 hurricane predictions remain high quality and trustworthy; Pastelok sounded confident of the range AccuWeather had landed on, and Silvers also sounded assured in the numbers CSU put out. But buoys break — the NDBC’s annual “maintenance mission” alone lasts eight months, not to mention its constant backlog of as-needed repairs — and other ocean monitoring programs are also at risk of losing their funding.
At the end of the day, a forecast is only as good as the data fed into it. Hurricanes are highly complicated systems, and every degree of water temperature, shift in wind shear, and variation in tropical waves can change the character of a storm. If NOAA’s data and quality control degrades in the coming months or even years, it’s not an exaggeration to say that the fallout could be catastrophic.
And as hurricane forecasters like to say: All it takes is one storm.
Current conditions: Breezy weather in Sarasota, Florida, is increasing today’s fire danger • Turin, Italy, is bracing for an April’s worth of rain in a single day • The aurora borealis may be visible over the northern U.S. tonight and tomorrow thanks to a geomagnetic storm.
The International Energy Agency released its monthly analysis of the global oil market on Tuesday, writing “buckle up.” The group cut its forecast by almost a third, estimating world oil demand will rise by 730,000 barrels per day in 2025, down from its estimate of just over 1 million barrels per day last month. The group further predicted the slowdown will extend into 2026 due to a “fragile macroeconomic environment” and the continued growth of EVs. Though “imports of oil, gas, and refined products were given exemptions from the tariffs announced by the United States,” IEA wrote that its analysis took into consideration “concerns that the measures could stoke inflation, slow economic growth, and intensify trade disputes.” The group noted that the new tariffs also make it more expensive to buy steel and the equipment required for drilling, and that “the situation is still fluid and substantial risks remain.”
On Monday, the Organization of the Petroleum Exporting Countries also cut its 2025 global oil demand forecast. Likewise citing the Trump tariffs, OPEC sees world oil demand rising 1.3 million barrels per day in 2025 and 1.28 million barrels per day in 2026, each down about 150,000 barrels per day from March’s forecast.
On Monday, energy executives and trade groups formally warned the Trump administration that its cuts to the Department of Energy would sabotage the president’s stated goal of “energy dominance.” As Heatmap’s Robinson Meyer previously reported, the agency stands to lose nearly one-fifth of its employees to buyouts and layoffs, with The New York Times reporting Monday that some of the deepest cuts are anticipated at the Office of Clean Energy Demonstrations and the Loan Program Office, which also provides support for clean energy development. “LPO continues to play a critical role in financing infrastructure that enables new nuclear power development, revitalizes domestic mineral production, and modernizes both grid and gas systems — all central to the administration’s goals of lowering energy costs, reshoring manufacturing, and achieving energy dominance,” the 30 signatories wrote in the letter, which was addressed to Energy Secretary Chris Wright.
President Trump’s executive order meant to boost “beautiful clean coal” could cost “tens of billions” of solar grid interconnection investments, according to comments made by Grid Strategies president Rob Gramlich in a webinar reported on by PV Magazine. (Gramlich is also a Heatmap contributor.)
As my colleague Matthew Zeitlin pointed out last week, many of coal’s uses can be “easily substituted with other sources, such as natural gas,” which is part of why coal production has fallen in the U.S. since 2008. Trump’s order could extend about 50 gigawatts of coal that would otherwise likely have been retired, thereby limiting the amount of wind and solar that can come online. Gramlich’s co-host for the webinar, Roth Capital Partners Managing Director Phil Shen, added that he was “incrementally more pessimistic” about utility-scale solar given the administration’s bolstering of coal.
Wisconsin has seen a record number of wildfires in 2025, with local experts citing the warming climate and extended droughts as part of what is fueling the blazes. “We’ve never had this many fires in January and February ever in the state of Wisconsin,” Jim Bernier, the forest fire section manager of the state Department of National Resources, said in comments reported by Wisconsin Public Radio. Wisconsin averages around 864 wildfires annually; there have already been 470 wildfires in 2025, double what would be expected by this time of year. Making matters worse, researchers say that areas where urban development borders wildlands account for nearly 10% of the fire-prone land in the state. “We have to mentally prepare ourselves that … we’re in it for a long haul,” Bernier said.
A new report released Monday found that women are “significantly more likely than men to name climate change or environmental issues as their top political priority.” The research, conducted by the Environmental Voter Project, revealed that 62% of climate voters are women, compared to just 37% being men. The divide is most pronounced among young voters, with women aged 18-24 twice as likely as men of the same age to list climate as a top priority. “This report confirms what so many of us have known for years: women are leading the charge against the climate crisis,” Jane Fonda said in a statement shared with the study’s release. “Mothers, grandmothers, and daughters are showing up, organizing, and voting like our lives — and the lives of our children — depend on it.”
Environmental Voters Project
Making buses free in New York City would wipe out $600 million a year in net fare revenues for the Metropolitan Transportation Authority — but create $1.5 billion a year in benefits for riders, boost ridership by 23%, and save riders 36 million hours a year, according to a new study by the transportation economist Charles Komanoff.