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How Trump’s widespread tariffs affect the U.S. solar industry
- The Trump Administration implemented tariffs at a rate of 10% on most countries, excluding certain products like energy, steel, and aluminum, as tariffs had already been applied to them.
- A higher reciprocal rate of 11% to 50% on imports from 60 countries was implemented on April 9 to match tariffs and trade enforcement policies.
- The executive order signed by President Trump also introduced 25% tariffs on steel and aluminum imports, impacting costs in various sectors, including solar projects.
- In December, the Biden Administration doubled tariffs on solar products from China, resulting in price increases for components like aluminum frames.
- The U.S. solar module market saw a 4% increase in December, with prices rising for products using cells from countries affected by the tariffs.
- Certain articles like energy products, aluminum, and steel were exempt from the new tariffs, and goods from Canada and Mexico with existing tariffs were not affected.
- New tariffs applied starting April 5 do not include specific materials like polysilicon, as listed in the annex to the Trump order.
- Upcoming higher tariffs on certain countries range from 17% to 49%, affecting imports from countries like China, the EU, Vietnam, and others.
- The solar industry is reacting to new antidumping and countervailing duty enforcement, with significant declines in imports from Southeast Asian countries impacted by the tariffs.
- Experts emphasize the need for incentives alongside tariffs to support U.S. manufacturing growth in sectors like solar, highlighting the importance of policies like the Inflation Reduction Act.
- Potential cuts to tax credits and evaluations of manufacturing investments, such as those for solar, battery, and energy storage, are anticipated outcomes in the aftermath of tariff implementations.
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