Trump energy bill cuts clean power funding and puts Canadian jobs at risk
Donald Trump
signed the 'One Big Beautiful Bill Act' into law on Friday(July 4), delivering sweeping tax cuts and energy reforms that could derail North America's clean energy goals and deal a blow to
Canadian jobs
, investment, and climate plans.
The legislation, more than 800 pages long, eliminates key clean energy subsidies introduced during
Joe Biden
's presidency, including tax credits for home solar, heat pumps, and battery storage. It also scraps electric vehicle (EV) rebates of up to US$7,500 for new and US$4,000 for used vehicles starting October 1.
Why it matters to Canada
Much of Canada's EV manufacturing, mining, and battery production was built on the promise of North American integration, a shared supply chain supported by Biden-era climate incentives. The rollback of those supports could now stall projects and push companies to reconsider investments.
'This interrupts whatever delicate momentum we had toward stronger climate policy and a clean energy transition,' said George Hoberg, a climate policy professor at the University of British Columbia.
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Major wind and solar projects in the US that once had up to a decade to qualify for tax credits must now be operational by the end of 2027. Projects that haven't started construction within the next year may lose federal backing. This could impact over 28 gigawatts of planned projects, according to Atlas Public Policy.
Canada's clean energy workers are watching closely. The
Laborers' International Union of North America
(LIUNA), which represents workers in both countries, warned the bill could destroy jobs. 'These solar and wind projects weren't abstract policy ideas,' said LIUNA general president Brent Booker. 'They were real job opportunities for real people.'
Oil and gas get a boost
While clean energy takes a hit, fossil fuels get a boost. Trump's bill expands offshore drilling leases and adds tax incentives for oil, gas, and coal companies. The American Petroleum Institute called it 'a win for American-made energy.'
Canadian Prime Minister Mark Carney is pursuing his own energy agenda, including carbon capture projects and a zero-emission vehicle mandate. But experts say Trump's bill makes that harder. 'It doesn't make it impossible,' Hoberg said. 'But it increases the cost and political resistance.'
Canada may still benefit
Experts say US uncertainty could push clean tech companies north, especially those looking for hydropower and a stable climate policy. But Canada must act fast. Trade experts are urging Ottawa to offer investment incentives or waive tariffs on US parts to stay competitive.
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