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In a move to shield America’s steel (HVH25) and aluminum (ALK25) industries from unfair trade practices, President Donald Trump has doubled down on tariffs. Earlier this month, he signed proclamations aimed at closing loopholes and eliminating exemptions, ensuring that foreign competitors face a full 25% tariff on steel and levying an elevated 25% tariff on aluminum.
While this move is designed to bolster American manufacturing, it could also send shockwaves through industries reliant on these metals. According to Jeff Currie, chief strategy officer of energy pathways at Carlyle, these tariffs could spell serious trouble for the data center industry by exacerbating an already critical shortage of transformers, the essential components that regulate electricity flow. Currie explained that transformers are essentially “big chunks of metal,” meaning any disruption in steel and aluminum supply chains will further choke production.
