• Trump’s tariffs: another factor influencing the future location of industries, alongside issues like access to clean energy and talent management.

  • Tariffs reinforce the need to promote reshoring, the return of industries to their original locations after past offshoring.

  • Reshoring should be seen as a concept that goes beyond the return of companies; it should be viewed globally.

  • The need for European reindustrialization stems from structural, long-term reasons that transcend political moments. As Loreto Ordóñez, CEO of ENGIE Spain, points out, “Trump has only accelerated the diagnosis.”

The tariff landscape outlined during Donald Trump’s presidency brings back a key question raised by economist Ricardo Hausmann in 2023: How will the transition to clean energy sources reshape the geography and structure of industrial production in the future?

As Hausmann notes, the history of industrial location has been closely linked to the availability and nature of energy. In the early stages of the Industrial Revolution, factories were clustered near rivers and mills, drawn by the need for a nearby energy source. The advent of coal, oil, and electricity allowed industry to become disconnected from these localized resources, thanks to the greater transportability of energy.

The rise of renewable energy opens the door to a new paradigm shift. While clean and increasingly cost-competitive, renewables remain difficult and expensive to transport. In this context, Hausmann offers a compelling answer: the industry of the future will need to be located where green energy abounds.

However, Trump’s ultra-protectionist “America Only” policy adds a new factor to the future of industrial location and reveals the need for reshoring or industrial relocation from a broader perspective of the concept itself.

The Tariff Situation Reveals the Structural Need for Reshoring

The trade policies driven by the Trump administration provide a powerful context for this reflection. Tariffs have highlighted the importance of reshoring, that is, the relocation of industrial production to the domestic territory—an idea deeply analyzed, among others, by expert Bruce Katz. In fact, even under Joe Biden’s leadership, the U.S. had already initiated an active process to bring industries back to the country.

In light of the current context, it is clear that a solid reshoring strategy is not only beneficial but perhaps essential. Facing global powers like China demands strengthening domestic industry and advancing toward greater production autonomy. This makes Hausmann’s question even more relevant: Where will the industry of the future settle? In this sense, tariffs—though potentially short-term measures—have accelerated the push toward reshoring. What’s essential is not losing sight of the fact that this decision represents a long-term strategic shift that should be reinforced, not diluted by the situation.

Europe Responds in Unison: A Score for Reindustrialization

On the other side of the Atlantic, Europe is also tuning its response to this new global industrial map. Like a well-composed symphony, various initiatives and strategic documents represent coordinated movements that interpret a clear and harmonious melody: Europe must reindustrialize. The Letta report, the Draghi report, the Competitiveness Compass, the Clean Industrial Deal, and the Action Plan for Affordable Energy represent different but complementary instruments, all interpreting the same score with this unmistakable message.

Loreto Ordóñez, Country Manager of ENGIE Spain, joins this chorus of strategic initiatives, emphasizing at the Expansión Energía 2025 meeting: “Trump has only accelerated the diagnosis.” Her observation highlights that, while the current political context has intensified the urgency, the need for European reindustrialization stems from structural, long-term reasons that transcend political moments.

This approach strengthens the belief that Europe must decisively advance in its reindustrialization strategy and implement a coherent, ambitious, and structured reshoring plan that will allow the continent to reclaim its role on the global industrial stage.

Reshoring 2.0: The Virtuous Triangle of Industrial Ecosystems, Competitive Energy, and Green Talent

Our vision of reshoring goes beyond bringing back existing companies. We advocate for the creation of a fertile ecosystem where new industries can be born and thrive. This holistic approach acknowledges that sustainable reindustrialization is not just about returning; it’s about building long-term growth, innovation, and rootedness conditions.

To achieve this goal, Europe must become an attractive destination for industrial investment. And that requires revisiting one of the fundamental pillars: the cost of energy.

Industries need constant, secure, and affordable access to electricity. The WindEurope report, Revamping Electricity Bills for a Competitive and Secure Europe, highlights a key challenge: the taxes and surcharges faced by European industries on their electricity bills are significantly higher than in the U.S. or China. In fact, electricity surcharges for industrial consumers in Europe can be up to four times higher than in China. This disparity requires a structural review of our energy model. If Europe wants to attract industry, it must offer a competitive and affordable energy framework.

Another key pillar for a competitive industry is talent. The energy transition requires a new generation of professionals with technical skills and a forward-thinking vision. The third edition of the Foro Sella, titled Strategic Autonomy: Industry, Energy, and Talent, will delve into how to cultivate this green talent and what conditions need to be created to attract and retain it.

Responding to Hausmann: Europe as an Industrial Destination

In response to Hausmann’s question about where industry will take root in the green era, our answer is clear: in Europe, if we create the right conditions. This ambition requires an integrated reshoring strategy that goes beyond merely repatriating production capabilities. We need to create a complete value ecosystem that benefits the entire chain—from energy producers to industrial consumers, including the skilled workers who form the core of industrial activity. Only in this way can the continent reclaim its leading role in the new global industrial geography.

Ultimately, reindustrialization is not just a short-term response to geopolitical rivalry or commercial challenges, but a strategic bet on building a more prosperous, resilient, and sovereign Europe.