Vietnamese rooftop solar startup SmartSolar is expanding rapidly and in need of funding. However, Trump’s move to shut down the USAID has halted many overseas funding programs. (Photo: SmartSolar)
U.S. President Donald Trump’s sweeping tariffs on all imported goods have sparked concern across the clean energy industry. For fledgling startups in countries like Indonesia and Vietnam, the resulting disruption to global supply chains could be the final straw.
Trump’s tariff policies ripple through global supply chains
A survey by the Indonesian branch of the non-profit New Energy Nexus (NEX) revealed that most of the 300+ clean energy startups interviewed were still in the early stages of development. Over half reported having less than six months of operational runway, and 60% said their projects were still in prototype or pilot phases—highly sensitive to shifts in cost, logistics, and market sentiment.
Diyanto Imam, Director of NEX Indonesia, noted that although few Indonesian startups export directly to the U.S., their products rely heavily on low-cost imported components—solar panels, batteries, inverters, and controllers. With the countries producing these components now caught in the crossfire of U.S. tariffs, startups are facing rising prices, delayed deliveries, and growing uncertainty.
Indonesian e-motorcycle startup Swap Energi, which has Taiwanese background, is feeling the impact firsthand. Co-founder Kevin Phang said the U.S. administration’s aggressive stance on renewable energy and unpredictable economic policies have made venture capitalists more cautious.
“Energy transition right now is a little bit confusing because the U.S. is not going electric anymore,” Phang said.
Compounding the issue, Indonesian President Prabowo Subianto recently slashed the national budget, reducing infrastructure spending, including subsidies for electric motorcycles. Last year, with government incentives, Swap Energi sold 7,000 vehicles in just three months. This year, with subsidies cut, only 2,000 units sold in four months.
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Trump's tariff shocks create headwinds for Southeast Asia clean tech startups. (Photo: iStock)
Vietnam startup turns to Germany as U.S. cuts funding for clean energy
Fortunately, Swap Energi’s focus on electric mobility and AI has helped attract investment. In 2024, the company secured a $22 million Series A round, covering expenses and generating profit. According to Phang, investors now prefer startups that avoid excessive marketing spending and aim to reach profitability within a year.
Vietnamese solar startup SmartSolar, which installs and manages rooftop solar systems, is also expanding rapidly and in need of funding. However, Trump’s move to shut down the U.S. Agency for International Development (USAID) has halted many overseas funding programs. The U.S. International Development Finance Corporation (DFC), another major source of energy project financing, is reportedly facing restructuring.
Kevin Junker, founder of SmartSolar, noted that DFC has historically invested up to $100 million annually in renewable energy projects. With funding channels in the U.S. tightening, SmartSolar is now seeking partnerships with the German government to sustain and scale its growth.
Source: Jakarta Post, Mongabay, Nikkei Asia
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