President Trump has announced a tariff on imported solar panels and washing machines. This article highlight focuses on the solar panel tariff. The tariffs were enacted in response to what the Trump administration has deemed as unfair practices of trade partners, including subsidies of certain industries.
The potential for further tariff announcements remains high. What remains to be seen is how these trade partners respond to this shot across the trade bow. Does it trigger a tariff war? Signs point to yes.
|Breaking: Trump Admin Issues 30% Solar Panel Import Tariff|
The White House announced Monday that President Trump has issued a 30 percent year-one tariff on imported solar cells and modules.
Tariffs will decline over a four-year period. The first 2.5 gigawatts of imported cells are excluded from the additional tariff in each of those four years, according to the U.S. Trade Representative fact sheet.
The USTR noted that China’s industrial planning “has included a focus on increasing Chinese capacity and production of solar cells and modules, using state incentives, subsidies, and tariffs to dominate the global supply chain.”
As a result of these state-directed initiatives, China’s share of global solar cell production skyrocketed from 7 percent in 2005 to 61 percent in 2012. China currently produces 60 percent of the world’s solar cells and 71 percent of solar modules, according to the fact sheet. Over this period, the U.S. solar manufacturing industry “almost disappeared,” the USTR stated, with 25 companies closing since 2012.
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