The tariffs will start at 30%, and decline to 15% after four years.
U.S. Trade Representative Robert Lighthizer has announced that the Trump Administration is imposing tariffs on imports of solar cells and modules.
According to CNBC, “Lighthizer’s office said that the trade representative made recommendations to the president based on the findings of the independent, bipartisan U.S. International Trade Commission.”
The tariffs will exempt the first 2.5 gigawatts of imports, and will decline in following years.
The tariffs will start at 30%, and then fall to 25%, 20%, and then 15%.
China is the key source of imported solar products, and the U.S. International Trade Commission had earlier said that solar panel imports were having a negative impact on the U.S. solar industry.
As noted by Bloomberg News, “U.S. panel maker First Solar Inc. jumped nine per cent to US$75.20 in after-hours trading in New York. The Tempe, Arizona-based manufacturer stands to gain as costs for competing, foreign panels rise. “
The move fits with the Trump Administration’s campaign rhetoric of protecting American manufacturing, particularly against China.
While China talks as if they support balanced trade, their actions state otherwise. They regularly steal intellectual property, and dump vast amounts of their cheap products onto the market to push other companies out of business.
More nations will need to wake up and take measures to address China’s manipulative trade policies, and targeted tariffs are a good place to start.
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