Shifting policy priorities have energy producers scrambling

U.S. delays coal-fired power plant closures

The U.S. Department of Energy has ordered coal-fired power plants in Indiana, Michigan, Pennsylvania, and Washington to keep running beyond their scheduled retirement dates. The department stated that these locations face an emergency brought on by tightening of electricity supply and increasing demand. Much of the supply shortage can be attributed to accelerated retirement of generating facilities and the halting of new offshore wind farms.

Keeping aging coal energy facilities open may result in higher operating costs and energy bills. Several of the orders are being challenged in court.

Given increasing energy demand, power plant retirement dates may continue to be extended for the next several years. As a result, logistics needs will shift towards replacement parts for older facilities instead of new ones.

U.S. government halts offshore wind projects

The Department of the Interior is pausing the leases for all large-scale offshore wind projects under construction. This affects five major wind farms being built off the East Coast. The U.S. administration says that these projects create national security risks laid out in recently completed classified reports, and the pause is intended to give leaseholders and states the opportunity to mitigate these risks.

According to the department, massive turbine blades and reflective towers create radar interference, generating false targets close to coastal population centers. The administration also considers offshore wind to be expensive, unreliable, and overly subsidized.

Shifting public policy is making it difficult for the energy industry to make long-term plans. Scenario planning can help supply chains flex through the changes.

On Venezuelan oil, it’s wait and see—for now

Following the arrest of Venezuela’s President Nicolas Maduro on January 3, 2026, impacts on global energy markets remain to be seen. Venezuela has the world’s largest proven oil reserves but only produces about 1 million barrels per day—less than 1% of global oil output.

Due to the complexities of international crude oil markets, limited production capacity in Venezuela, and unknowns about the state of the Venezuelan government and extent of U.S. involvement, it’s difficult to ascertain how oil production and prices may evolve in the near future.

From a global shipping perspective, Venezuela is not a large global shipper and is not serviced by any major deep-sea providers. After an initial disruption following the events of January 3, it currently appears that air and ocean service continue as normal.

C.H. Robinson is monitoring the situation.

Latest tariff updates

USMCA review update

The six-year review of the U.S.-Mexico-Canada Free Trade Agreement (USMCA), which could reshape trade relations between the members, is under way. While the U.S. administration hasn’t committed to renewal, it has generally favored nearshoring. A decision is expected by July 2026.

Mexico tariffs on goods from China and other Asian countries

On January 1, Mexico imposed tariffs of 5% to 50% on a range of goods without explicitly targeting the energy sector. The tariffs do apply to certain steel, plastic, and glass products. The move supports “Plan Mexico” goals to add 350,000 jobs, cut the trade deficit with China, and boost the local content of goods by 15% by 2030.

Canada steel tariffs

Canada imposed a 50% surtax on certain steel imports from countries with which it does not have free trade agreements, effective December 26, 2025. The measure specifically targets Chinese overproduction.

U.S. Supreme Court tariff decision

A ruling on whether the administration can levy tariffs under the International Emergency Economic Powers Act (IEEPA) is now expected this month, possibly as early as Friday, January 9, when the Court issues its first round of rulings for the new year. If overturned, importers may receive refunds, though expectations for a quick refund process are low.

For more details, go to the Trade Policy & Customs section of this report.

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