The Economic Perspective 5/15/2026
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- 5 min read
The Latest Trending Economic, Environmental and Infrastructure News Curated for You by The Balmoral Group
The Balmoral Group provides practical, professional and precise Economics, Data Analytics, and Engineering Consulting services and is part of a globally integrated team.
Happy Friday!
Welcome back once again to the Economic Perspective! Earlier this week the Department of the Interior approved the first-ever tribal resource agreement. This agreement with the Southern Ute Indian Tribe will help with their own ability to manage energy resources on its land without needing to be limited by federal bureaucracy. The hope is this will be a blueprint for other tribes moving forward. Read more about this here.
Our articles this week cover DOE grants for nuclear energy, clean air in Florida, impacts on the sulfur trade from the War in Iran, and more! Our data visualization presents future sea level rise in New Orleans.
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Latest News of Current Tariffs
Last Thursday saw another change to the tariffs the Trump administration put in place after previous ones were ruled unconstitutional by the US Supreme Court. The 10% tariffs that were subsequently rolled out as replacements were also ruled unlawful by the U.S. Court of International Trade, as the reasoning behind them was to correct a “balance of payments deficit," which was found not to apply under the trade provisions that allow the President to impose tariffs. The White House has stated that it plans to continue looking for other legal avenues to impose tariffs, but in the meantime, this 10% tariff will be removed, and further refunds may need to be issued, including refunds related to previously imposed tariffs that were struck down. Read more here and here.
DOE Grants Help WA Prepare to go Nuclear
Earlier this month, the U.S. Department of Energy (DOE) granted $1.4 million to Washington State University (WSU) in support of the DOE’s “Reactor Ready” initiative, which aims to prepare the next generation of workers for nuclear operations. Ultimately, the funding will support a national nuclear workforce gap analysis, and the information gathered from this analysis will help design classes and training programs to facilitate students’ and workers’ transitions into the field. This push to expand the nuclear workforce also reflects growing demand within the state. Amazon announced last year that it intends to build a Small Modular Reactor (SMR) facility (ultimately housing around four SMRs) in Washington State. Read more here.
The Evolution and Future of Agricultural Conservation
The United States Department of Agriculture (USDA) has invested an average of $6.2 billion annually in conservation efforts from 2002-2018, supporting improvements in soil health, habitat, and water and air quality. A recently released report highlights the trends and status of these programs, focusing on the three core initiatives: the Environmental Quality Incentives Program (EQIP), the Conservation Stewardship Program (CSP), and the Conservation Reserve Program (CRP). EQIP recently saw an increase in targeted wildlife habitat funding, while prescribed grazing became one of the most widely accepted CSP practices in terms of acreage. In addition, the CRP acreage cap increased to 27 million acres, although that remains well below the original 45-million-acre cap. Funding for these three programs has steadily grown over the years, and the USDA remains focused on improving their cost effectiveness. Read the report here.
Florida Continues Clean Air Streak
Florida continues to rank among the country’s cleanest states for air quality, according to the American Lung Association’s 2026 State of the Air Report. The report highlights 21 Florida counties for low ozone pollution levels and found that no Florida counties appeared on the list of the 25 most polluted places to live. State officials also noted that Florida has met or exceeded all federal air quality standards for five straight years, even as the state's population has grown past 23 million residents. Since 2000, industrial emissions have dropped by 78%, and ozone pollution levels have been reduced by nearly half, despite continued population and economic growth across the state. Read more here.
Strait of Hormuz Conflict Impacts Sulfur and Renewable Energy
With the recent Iran War and the blockade of the Strait of Hormuz, many are aware of the dramatic increase in oil prices. However, the sulfur trade, and consequently sulfuric acid production, is also being impacted. Sulfuric acid is essential in the manufacturing of renewable energy materials used in solar panels, EV motors, wind turbines, and other technologies. Approximately 50% of seaborne sulfur trade passes through the Strait of Hormuz, and sulfur prices have already increased by 165% year-over-year and 25% since the start of the conflict. This disruption highlights the importance and impact of oil production supply chains. Oil production is expected to peak in 2035 and decline afterward, and sulfur production is expected to follow the same trend. This presents a growing challenge for industries that rely on sulfuric acid manufacturing, as well as the ongoing search for alternative production methods. Read more here and here.
Warning Signs for Credit Industry Fueling the AI Boom
AI companies have increasingly relied on private investment from credit funds to finance data center construction and expansion. In 2025, one-third of all private credit deals were related to AI, and any major shift in valuations could leave financial institutions vulnerable. Electricity and water continue to pose limiting factors to AI growth and data center development. On the other hand, if demand for AI declines after significant investment in data center construction, financial institutions could face reduced returns. Signs of growing risks are already emerging, with two privately credit-backed automotive companies, Tricolor and First Brands, going under. Read more here.
Data Visualization of the Week
New Orleans Relocation Now a Must
As climate science shows that certain areas are past a point of no return in terms of preventing future climate catastrophe, relocation efforts for various coastal communities should begin sooner rather than later. In the coming decades New Orleans and surrounding areas in Louisiana will face sea level rises of 3 to 7 meters. Previous infrastructure improvements that have helped protect New Orleans are unlikely to remain sufficient in the future, as rising sea levels overwhelm costly levees. At 3 meters of sea level rise, New Orleans could become an island, and at 7 meters, much of the city, along with coastal Louisiana, could be completely underwater. Specific timelines are still unclear, but scientists have confirmed that New Orleans will become increasingly difficult to keep afloat over the next several decades. Below is an image showing land underwater following a 7-meter sea level rise, and an interactive version of the map can be found here.
