Trump's tariffs and gas-first agenda could make heating homes with electricity more expensive — here’s what homeowners should know

Trump went on to push gas energy during a news conference, stating, "[Biden] wants everybody to have an electric heater instead of a gas heater … Gas heat[ing] is much less expensive …They don’t want you to have the gas where you don’t have the problems of the electric. … The source is plentiful … They work much better, they look much better."

Tankless water heaters are indeed less prevalent than their standard gas or electric water counterparts. However, the Appliance Standards Awareness Project notes over 60% of tankless gas water heaters sold today use condensing technology and therefore already comply with the new standard.

So, even if some people turn to heat pumps or electric technology, that doesn't mean gas water heaters will be replaced with electric alternatives.

What is of concern is how Trump’s new tariffs might impact the cost of cleaner energy sources and ultimately which heat source you choose.

What Trump's tariffs might mean for you

For those looking to switch to heat pumps, it's important to note that tariffs currently being put in place will raise their production cost. Plus, rebates are also potentially on the chopping block. But what does this potentially mean for your bottom line?

Take Canada, for instance. As America’s largest supplier of oil, electricity and natural gas, the country provided 61% of its crude oil imports in 2021, as well as 98% of its natural gas imports and 93% of its electricity imports in 2020.

The 10% tariffs levied on Canadian energy mean companies there will incur higher costs that will inevitably trickle down to everyday Americans (particularly those in the Midwest, which shares an electrical grid with Canada and heavily relies on their trade, according to Evergreen Action).

A big reason you'll feel it is becasue the industry's supply chain is slow to move and change.

For example, it takes a lot of time, effort and capital to change operations, so you won't quickly see new infrastructure like pipelines and refineries. Also, new rare earth minerals and elements are scarce, making clean energy projects pricier as electricity demand boosts.

This means Americans in states heavily dependent on Canadian hydropower and electricity (like the Pacific Northwest, Minnesota, New England, New York and Michigan) will experience higher electricity bills.

What about other clean energy products?

Other clean energy products may get pricier as tariffs hit the solar, battery, wind and electric vehicle industries.

As the Scientific American (SciAm) reported, The American Clean Power Association (ACPA) trade group said it was "concerned that increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance."

The countries impacted by Trump's tariffs happen to be major players in the clean energy sectors that create products Americans have come to rely on, like solar panels and electric vehicles.