TL;DR
The US imposed massive tariffs on Southeast Asian solar panels, effectively killing competition and raising prices for consumers. This is a blatant handout to US solar manufacturers disguised as economic protectionism.
Story
The US just slapped tariffs of up to 3,521% on solar imports from Southeast Asia. This isn’t about protecting American jobs—it’s about kneecapping the renewable energy sector. Remember when they said tariffs would bring back manufacturing? That was a lie. This is a handout to failing US solar companies, plain and simple.
How does it work? Imagine a solar panel made in Vietnam costs $100. With a 3,521% tariff, it suddenly costs $3,621. American-made panels are now cheaper by comparison, even if they’re lower quality or less efficient. It’s like setting your house on fire to kill a spider. The whole market will suffer.
Who gets hurt? American consumers, who’ll pay more for energy. Installers will see jobs vanish. Southeast Asian economies will suffer. It’s reminiscent of the trade wars of the early 20th century, which contributed to the Great Depression. Are we about to repeat history? Sure seems like it.
The ‘saving grace’ is First Solar—an American thin-film solar manufacturer—might benefit, but that’s just moving deck chairs on the Titanic. The real lesson? Government interference rarely solves problems. It usually creates new ones.
‣ Tariff: A tax on imported goods, designed to make them more expensive and thus less competitive with domestic products. ‣ Subsidy: Government financial assistance to a business or industry, intended to boost production or competitiveness.
Advice
Don’t believe the hype about tariffs ‘saving jobs.’ They’re usually just a way to pick winners and losers in the market, at the expense of consumers.