Issue Paper
Tariff on Solar Panel Imports: Challenges for International Business
January 26, 2018

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On January 22, 2018, U.S. Trade Representative Robert Lighthizer announced that President Trump approved the imposition of safeguard tariffs on imported solar cells and modules. The safeguard tariffs on imported solar cells and modules will begin in year one with a 30% tariff increase which will decrease by 5% every year over four years, ending at 15% tariff increase in year four. This decision came as a result of investigations, findings, and recommendations from the U.S. International Trade Commission. While this decision was intended to boost domestic manufacturing at the detriment of foreign industries, some argue that the tariffs will both fail to accomplish any measurable improvement in domestic manufacturing capability and pose a threat to US solar technology innovation. Looking forwards, countries in similar situations to the US may look to alter their decision making to improve upon the expected outcome of the US's decision to place high tariffs on imports.