Solar Power’s Fate in Trump’s Hands
Impending Photovoltaic Tariffs Would Benefit Chinese and German Companies
With the stroke of his pen next January, President Trump may deal a savage blow to the solar-power industry, electricity customers, and the nation’s economy. On September 22, the U.S. International Trade Commission decided to recommend to the president that tariffs be imposed on imported solar panels. The story leading to this disaster reads more like a thriller than what one might expect from an international trade case. The consequences will be immediate, deplorable, and felt by us all for years to come. If you have been considering solar panels on your roof, get them installed before January or see the price skyrocket.
It began when two bankrupt domestic solar panel manufacturers, Suniva and SolarWorld Americas, filed a “global safeguard” case under an obscure provision of U.S. trade law complaining that foreign imports of solar panels created an environment in which U.S. manufacturers couldn’t compete. Interestingly, unlike most trade cases, this one doesn’t assert that there was any wrongdoing by foreign manufacturers or governments, such as dumping or illegal subsidies. It simply contends that without protection, America can’t produce solar panels at competitive prices.
It seems important to note at this point that while the case is ostensibly about protecting American manufacturers, Suniva and SolarWorld are actually owned by Chinese and German companies, respectively.