As the US adopts a more protectionist policy in international trade, one cause for concern would be the solar power industry. Tariffs with a markup of 30% were approved on imported solar panels. Most of these panels are coming from China, where cheap costs of labor give a competitive advantage. The US and China don't have a balanced trade, with a deficit for the US since cheaper imported goods from China have been coming. So far we haven't seen any massive layoffs or lower demand for solar. It appears that China has committed to building the solar panels in the US through companies that are already based here. The question is now whether the local production can match high demand to lower imports. It will be more expensive to produce solar panels in the US.
The typical solar panel installation can be provided free. Be careful though, because the company will then charge you for the electricity you produce monthly, so it is more like a lease agreement. I wrote a piece about that here:
Otherwise the cost of a solar installation that is 6 kW (1 solar panel 65" x 39" @ 265 W each) is $16,800 before tax credits. After tax it can go as low as $10,045, depending on how many panels were installed and what state you live in. With a 30% tariff, that total cost will be > $16,800 most likely, unless there are more incentives from state and government to offset the costs. What is interesting is that there will be a 30% tax rebate after the tariffs have been applied, so that can knock some of the costs off. As for jobs affected, the #SEIA estimate 23,000 jobs will be lost. Could those jobs lost be offset by local production? If the tariffs can give local solar panel manufacturers more breathing space to compete with imports, could they absorb the job losses to their workforce? President Trump even wants China's manufacturers to come to the US to build the solar panels. The demand is already there and solar does help add to power solutions as seen in California, so it's not like the whole market is going to tank. Check back later this year and we will see the impact of this policy.
Further Reading:
https://www.engadget.com/2018/01/30/solar-installers-policy-trump-tariff/
it's the same story everywhere.... parts imported from China cause of low manufacturing cost.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Retaliation is always likely too, but now it depends on which items are excluded from tariffs due to demand.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit