Trump’s Solar Tariffs Turn 2 Years Old, Blistering an Industry

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(Bloomberg) -- Want to receive this post in your inbox every day? Sign up for the Terms of Trade newsletter, and follow Bloomberg Economics on Twitter for more.Today marks the second anniversary of Donald Trump’s first deployment of tariffs as U.S. president, and one of the main intended beneficiaries

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The move, based on a so-called 201 case requiring proof of serious harm from unfair global competition, put tariffs on $8.5 billion in solar modules and cells starting at 30% in year one and scaling down to 15% by year four. Since then, some solar companies that initially pushed the U.S. government for tariffs have either gone bankrupt or been acquired. Other firms that received exemptions or are otherwise unaffected by the levies have benefited. It’s also worth noting that neither the U.S.-China phase-one deal nor the U.S-South Korea agreement resolved the Trump administration’s solar concerns.U.S.-based First Solar has benefited, though much of its manufacturing capacity is in southeast Asia.

That last part is particularly ironic given what’s also happening today in the Swiss Alps. Trump is just wrapping up meetings at the World Economic Forum, where government and business leaders are focusing on the dangers posed by climate change.

 

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