US Transformer Shortage Threatens AI Expansion Amid Trade War Disruptions

The United States faces a looming shortage of electrical transformers, a crisis that threatens to disrupt President Trump's plans for a significant expansion of AI-driven industries. Currently, transformer delivery times have surged from approximately 4–6 weeks in 2020 to a staggering 3–5 years, raising concerns from industry experts about potential grid instability amid rising energy demands from new data centers, manufacturing plants, and infrastructure developments. This supply chain bottleneck is largely attributed to Trump's aggressive trade policies, including a 25% tariff on imports from India—responsible for producing 60% of the world's transformers—and the potential implementation of a 100% tariff on Chinese imports, which account for an additional 20%. Despite transformers' critical role in converting high-voltage electricity to usable levels, domestic manufacturing covers only 20% of the U.S. needs. Industry insiders, such as the National Association of Electrical Manufacturers (NEMA), warn that current orders will not be fulfilled until 2028, well past the deadline for supporting Trump's pledge of $1 trillion in AI data center investments. India and China dominate glo...