Solar power has begun to transform the world’s energy system

I would recommend reading or watching what Tony Seba has put out. He has correctly predicted where we ended up with solar, and his predictions for the next stage of the energy transition is very remarkable and uplifting. It seems overly optimistic at first but makes a lot of sense when you look at the trend lines.

I think the raw economics behind the transition are very interesting. People have a hard time imagining transformative changes. They keep trying to project the current state of affairs onto the post transition state. Of course the current state is mostly the result of how things used to work and not really a predictor for the future. When things stop working in the same way, a lot of other things start shifting. For example steel production is happening close to where coal used to be produced. And a lot of other industries depend on steel. What happens if steel production transitions to renewables? It will move to wherever renewables are cheapest. Which typically isn't where it's currently happening. Everything depending on cheap steel might move as well.

I think the current US policies are unfortunate (for the US) but ultimately futile. They'll fall behind and will see their exports affected. That will lead to local economic problems that ultimately will lead to economic reform to fix that. It will delay the energy transition in the US for a bit (10-20 years, maybe less). The tariffs will curtail imports. Which, ironically means other countries will be less dependent on exporting to it. And also less motivated to import relatively expensive things from the US. So US exports will decline in lockstep with its imports. And the whole tariff volatility just means that countries will start insulating themselves from being dependent on anything coming from the US. And that will extend to all sectors in the US. Agriculture, gas, cars, software services, etc.

The obvious fix to this in a few years will be a hard break with the (recent) past and ending trade wars and pulling the plug on the fossil fuel industry. Which by then won't be competitive anymore. It actually isn't right now but the US chooses to shove that under the carpet with trillions of dollars of government support. And most of that money is being borrowed. Interest and inflation is going to be a key thing to keep an eye on in the next few years. The US is sitting on a big stinky gas fueled debt bubble currently. What happens when that bursts and the gas becomes worthless?

Steel factories cannot shutdown temporarily due to high electricity prices. They need a steady source of electricity.

This needs to be taken into account. I don't know if factories can be made with better insulation so they can "hibernate" somewhat when electricity is expensive.

So they might want to be located in a location with both wind, solar and hydro to ensure a (somewhat) stable price.

Denmark has a lot of wind mills and use hourly pricing for most consumers. This means that the price can vary a lot from hour to hour. 21st of June the price of electricity itself (excl taxes and transmission) was negative 3 cents at 2pm and 18 cents at 8pm. That is a difference of 21 cents over 6 hours.