US president Donald Trump on January 22 slapped a whopping 30% tariff on foreign-manufactured solar panels imported into the North American country. The move is part of a broader measure that also saw a tariff placed on washing machines. China, along with South Korea, are the hardest hit by the new tariffs.
China was incensed by the decision. The country’s Ministry of Commerce issued a statement with strong language including "China hopes the U.S. will exercise restraint in using trade restrictions," and warning that it will "resolutely defend its legitimate interests." The Ministry further urged the Trump administration to tread carefully when making future trade decisions.
Meanwhile, South Korea was no less angry with the decision. Trade Minister Kim Hyun-chong said the US president’s decision was "excessive and a clear violation" of World Trade Organization rules, adding the country planned to file a complaint with the world body over the tariffs. "The U.S. opted for a measure that puts the domestic political situation above international rules," he said.
Proponents of Trump’s tariff say it supports the “America first†agenda and will stimulate the manufacturing sector which has suffered at the hands of the Chinese who flood the market with low-cost panels. Conversely, detractors say Trump is looking to buoy his pro-fossil fuel stance with his base and big oil, and was willing to sacrifice a rapidly growing American clean energy industry.
Major US solar states such as California warn that the tariffs will have a negative effect and dampen the sector’s growth, while making the panels more expensive to the consumer and offering a longer pay-back period from savings on electrical costs.