Mr. Trump’s Tariffs Will Not Bring Back Manufacturing Jobs

Dealing a serious blow to the US solar industry and despite protests from experts and a national trade group, President Donald Trump has approved a 30 percent tariff on imported solar panel materials.

As well representatives of the solar industry have also criticised the move, saying that it would ironically lead to job losses in the U.S., as many people are employed in manufacturing the parts for cheaper imported panels. In 2005, China’s share of the global solar cell market was 7 percent.

A separate advocacy organization, the Solar Energy Industries Association, warned before the tariffs were announced that such an action would put 48,000 to 63,000 American solar industry workers out of a job this year.

The Chinese government today rejected and described as abusive the new tariffs imposed by the United States on imports of solar panels and washing machines, another protectionist action that harms bilateral and worldwide trade.

Trump’s announcement of the new tariffs came as Mexico, the United States and Canada are meeting in Montreal, Canada, this week for the penultimate round of NAFTA renegotiation talks. Critics have warned that the levies will stifle investment in U.S. solar projects, while USA manufacturers will be unable to scale up to meet any new demand.

But the SE statement questioned the impact of Mexican imports on the competitiveness of us industries. And he says the 30 percent tariff on foreign panels will drive the cost up for consumers – convincing many not to buy them. On imported washers, they begin at 20 percent on the first 1.2 million machines and jump to 50 percent before also declining.

A 1974 trade law allows USA companies to seek trade protections if they can prove damages from a rise in imports. The tariff is set at 30% for the first year and drops by five percentage points annually to 15% in the fourth year.

“We foresee further protectionism moves to be made by the USA government in order to “protect” its economy”.

The Trump administration has blamed the five-year-old deal for the growing US trade deficit with South Korea. China now makes 60 percent of the world’s solar cells and 71 percent of its solar panels, according to the U.S. Trade Representative.