The decision of Trump's administration to impose global tariffs on solar panel imports could hamper solar industry and technology investments, as well as raise the possibility of importer countries imposing trade barriers on the U.S., experts told Anadolu Agency on Wednesday.
President Donald Trump last month signed off on two trade actions to impose steep tariffs on foreign-made solar panels and washing machines.
The new order imposes a 30 percent tariff on U.S. solar panels imports, which will gradually decrease up to 2021. The tariffs on solar modules and cells will be 30 percent this year, 25 percent next year, 20 percent in 2020 and 15 percent in 2021.
The first 2.5 gigawatts of imported solar cells will be exempt from these tariffs during these four years.
'One of the major problems in the decision made is that the U.S. does not have the infrastructure in place to supplant imports,' Dan Whitten, Solar Energy Industries Association's (SEIA) vice president of communications, said.
The U.S. installers will just be forced to pay higher prices, which will in the short-term, decrease demand and cause the layoff of tens of thousands of American workers, Whitten affirmed.
'Solar’s rapid growth across the U.S. has been a testament to its ability to compete. In many parts of the country, solar is now the cheapest electricity option. By artificially raising prices, the government is, without a doubt, hurting solar’s ability to compete on cost,' he asserted.
Whitten argued that the decision to impose 30 percent tariffs on imported solar cells and panels is 'a loss for America.' The tariffs, which just came into effect, will result in the loss of roughly 23,000 American jobs and the delay or cancellation of billions of dollars in solar investments, he added.
On the possibility of any trade barriers being implemented on the U.S. from other countries in response to the solar tax, Whitten said that several countries have raised objections to the tariffs.
- 'U.S. citizens are the ones who will pay more because of these tariffs'
Tori K. Whiting, research associate at the Center for International Trade and Economics at the Heritage Foundation, told Anadolu Agency that the tariffs are for the benefit of two U.S. companies who have really serious economic issues.
Last year, Solar manufacturers SolarWorld AG and Suniva asked the government to impose tariffs on imported solar panels as the influx of cheap panels into the U.S. made it impossible for the U.S. companies to compete.
'They [the tariffs] will really make solar panels and models more expensive for Americans,' she asserted, noting that price increases would depend on the product.
The tariffs are also destined to make it more difficult for the solar industry to at least move in a competitive direction, according to Whiting, who added that it is just another layer of government intervention for the industry that is already highly subsidized.
American citizens are the ones who will be affected by the new regulations and they will pay more because of these tariffs, Whiting said.
Several countries filed consultation requests to the World Trade Organization (WTO) over the tariffs, including China, Korea, Taiwan and the EU, Whiting noted.
'So I think that you will see that the process to come to a solution between the U.S. and other countries is that they should not be included in these tariffs. If the WTO rules in favor of the other countries and not the U.S., then there will be the possibility that these countries can be either compensated or they can retaliate,' she concluded.
By Ebru Sengul
Anadolu Agency
energy@aa.com.tr