For the last five years, the solar industry in the United States has seen boom-times. In 2017, together, wind and solar accounted for 55.4 percent of the 28.5GW overall total and about 49.2 percent of the utility-scale total electricity generating infrastructure.
The $29 million solar industry employs over 88,000 Americans today, and that’s not including the 36,000 people currently engaged in solar manufacturing that don’t make solar cells and panels.
President Trump decided to go along with the recommendations of the U.S. International Trade Commission, which is supposed to be a bipartisan body and totally independent from the federal government. The agency has six members, and if a dispute results in the members being evenly divided, the reward always goes in favor of the U.S.
“The president’s action makes clear again that the Trump administration will always defend American workers, farmers, ranchers, and businesses in this regard,” U.S. Trade Representative Robert Lighthizer said in a statement announcing the decision, adding, “After consulting with the interagency Trade Policy Committee and the bipartisan U.S. International Trade Commission, the president decided that increased foreign imports of washers and solar cells and modules are a substantial cause of serious injury to domestic manufacturers.”
What the tariffs will do
Trump approved tariffs of 20 percent on the first 1.2 million washers and 50 percent of all subsequently imported washers in the following two years. Additionally, a 30 percent tariff will be imposed on solar panel components, with the rate declining over four years.
Suniva, a Georgia-based manufacturer that has a Chinese majority owner, went into Chapter 11 bankruptcy protection in April 2017, blaming their misfortunes on cheap imports from China as the reason behind their failure. Solar World, a German company with a large manufacturing facility in Hillsboro, Oregon, also had to file for insolvency in May, citing the same reason.
Both companies took their complaints to the U.S. International Trade Commission, which ruled in September the two domestic solar panel manufacturers had suffered serious injury from foreign competitors, giving President Donald Trump until January to decided whether to impose tariffs.
The CEO and President of SolarWorld Americas Inc., Juergen Stein, praised the administration’s action in a statement: “SolarWorld Americas appreciates the hard work of President Trump, the U.S. Trade Representative, and this administration in reaching today’s decision, and the President’s recognition of the importance of solar manufacturing to America’s economic and national security. We are still reviewing these remedies, and are hopeful they will be enough to address the import surge and to rebuild solar manufacturing in the United States.”
However, the president’s move has not made many people in the industry very happy tonight. The President and CEO of the Solar Energy Industries Association, Abigail Ross Hopper, predicted the tariffs will lead to the loss of roughly 23,000 American jobs this year.
Mark Bortman, the founder of Exact Solar in Philadelphia said knowing about the prospect of increased tariffs back in October has forced him to delay hiring and expansion plans.
“Solar is really just starting to take off because it is truly a win-win-win situation” for consumers, workers and the environment, he said. “Tariffs would really be shooting ourselves in the foot.”
