Letter from the US: The curse of strong energy exports

Rebuilding industry, energy dominance and lower energy costs are key goals that remain at odds in 2026

US President Donald Trump emphasised three key goals for his new administration during his 2024 election campaign: rebuilding domestic manufacturing, making the US an energy superpower, and bringing down consumer energy costs. These three goals are in conflict. The US cannot rebuild its manufacturing base and remain an energy superpower. It will take lower energy prices to expand the manufacturing base. While lower prices would benefit consumers—a key Trump goal—they would also depress energy production. The data and numerous economic studies make it clear that strong US energy exports have undermined and will continue to undermine efforts to boost US manufacturing. Experience shows it will