Joe Donovan Quoted in Heatmap News: How Trump’s Steel Tariffs Could Mess Up His AI Plans

Heatmap News, a climate news platform, published an article discussing the Trump administration’s 25% steel and aluminum tariffs, and the challenges these tariffs will create as they relate to a specific type of steel — grain oriented electrical steel (GOES) —  used to manufacture transformers, a “crucial piece of electrical equipment for expanding the grid that are in critically short supply.” Adding to the challenge is that there is only one domestic company (Cleveland Cliffs) producing GOES, and they can barely meet half the demand from transformer manufacturers in the U.S.

Pierce Atwood energy partner Joe Donovan stated, “We’re forced into the international markets. Reliance on a single domestic supplier for this critical material is a national security risk. The grid is the foundation of our entire economy and should not be reliant on a single source for such a critical component.

“The problem is not just that the U.S. doesn’t produce enough of this material. Cleveland Cliffs lacks the capacity to produce GOES  in the size or efficiency levels that are needed in modern, efficient large power transformers. Thus, domestic transformer manufacturers are unable to procure this GOES from any domestic source.”

Please visit Heatmap News for the complete article.

Joe Donovan is executive director of the Transformer Manufacturing Association of America and a well-respected energy regulatory and transactional attorney.