Trump’s Tariffs Will Impact U.S. Solar Industry

WASHINGTON DC – The Trump Administration passed tariffs starting on April 5 that will apply to most countries at a rate of 10%. The tariffs apply to a wide range of imports, covering most products.

The rates will be replaced by a higher “reciprocal” rate between 11% and 50% to 60 countries starting on April 9 and are designed to match tariffs and related trade enforcement from 60 countries.

The additional tariffs will not apply to “energy and energy products” as well as steel and aluminum, which were recently applied 25% tariffs in a separate order in February.

“Large and persistent annual U.S. goods trade deficits have led to the hollowing out of our manufacturing base; inhibited our ability to scale advanced domestic manufacturing capacity; undermined critical supply chains; and rendered our defense-industrial base dependent on foreign adversaries,” said the executive order.

The executive order signed by President Trump that adds 25% tariffs to imported steel and aluminum from most global providers will increase costs for all project types, from the small residential solar projects to the largest utility-scale solar plants.

SinoLink Securities said that aluminum frames were the most expensive solar panel manufacturing component in November 2024, representing 14% of total solar panel production costs.

In December, the Biden Administration doubled tariffs on solar products from China. Section 301 tariffs are 50% for polysilicon, wafers, and solar cells for products imported from China.

The U.S. solar module market saw a 4% increase in December, up by $0.01 per watt to $0.26 per watt. Modules using cells from Cambodia, Malaysia, Thailand and Vietnam — countries affected by the policy — saw a 7.7% price increase from November into December. While those prices have since eased slightly, they remain elevated, said a report from Anza.

The new round of April 5 tariffs do not apply to goods shipped from Canada and Mexico that are already assessed with 25% tariffs.

“The new tariffs will not apply to certain articles that Trump has already singled out for current or possible future sector-specific tariffs, such as steel, aluminum, some downstream products that use steel or aluminum, copper, pharmaceuticals, autos and auto parts, semiconductors, certain critical minerals and energy and energy products,” said Keith Martin, partner, Norton Rose Fulbright.

An Annex to the Trump order lists industry specific materials that will not be hit with the new round of tariffs. Polysilicon and other relevant materials are exempt from the increased tariffs. Find the full annexed list here. 

Imports from countries that will be assessed higher tariffs on April 9 include:

The new tariffs are in addition to some existing tariffs, said Martin. “For example, Chinese goods will be subject to tariffs of 54% starting April 9: an existing 20% tariff that Trump imposed earlier plus a new reciprocal rate of 34%.”

Read more at PV Magazine