Trump's Solar Tariffs Costing American Jobs

Mucking with the free markets always has unintended consequences, and President Trump’s trade war with China is a great case study in blowback – Trump’s recent tariffs on imported solar panels are striking a serious blow to a thriving American industry.

We’re all aware of China’s proclivity for counterfeiting and cheap labor, and numerous American industries take full advantage of the latter while condemning the former. And that’s where solar power comes in.

While American solar power lags far behind the rest of the world, solar panel installation is a booming, $28 billion industry. And installers rely on imports for up to 80% of its supply. As I previously noted, imports of silicon photovoltaic cells surged nearly 500 percent between 2012 and 2016.

Tariffs on imported solar cells will hit the industry hard. And it has – Trump’s 30% tariff has done crippling damage to a thriving domestic sector.

The tariffs are costing SunPower, which relies heavily on imported solar panels, upwards of $2 million per week. No good deed – or attempt to manipulate the market – goes unpunished.

As pointed out by the NY Times, “While producing more panels in the United States will create a few hundred jobs, the tariffs could cost tens of thousands, largely on the installation side of the business.”

Abigail Ross Hopper, president of the Solar Energy Industries Association, claims the tariffs have “slowed down the growth of our industry.” By her estimate, the tariffs will actually cost up to 23,000 American jobs.

SunPower and JinkoSolar – a Shanghai-based company considering expanding into Jacksonville, FL – are currently applying for exemptions from the tariffs, and the list of firms trying to circumvent this job killer will grow.

Read more about this ongoing story here: https://www.nytimes.com/2018/05/03/business/energy-environment/solar-industry-tariffs.html