Trump administration’s decision to impose tariff on solar imports will have an adverse impact on the U.S. solar industry as well, according to the U.S. Solar Energy Industries Association.
The decision could result in the loss of around 23,000 U.S. job this year and delay or cancellation of billions of dollars of investments in solar projects, the association said.
Globally, the decision is likely to have a direct impact on solar industry, especially the booming markets in Europe and Asia, according to reports.
Soon after the announcement, the stocks of SMA Solar, the largest solar group in Germany, fell 4.6 percent to a four-week low. SMA Solar claims 46 percent of its sales comes from Americas.
The stocks of Norway’s REC Silicon fell 1.2 percent.
Meanwhile, there was optimism among the U.S.-based players, as seen in the upswing in the stocks of leading firms like SunPower and Tesla.
China, the largest supplier of solar panels globally, will be the most affected by the new tariff rules.
China’s Ministry of Commerce issued a statement saying that Trump’s decision damaged the global trade environment. The Chinese companies will be forced to curb overseas expansion, according to the Ministry of Industry and Information Technology.
South Korea is planning to respond to U.S. trade protectionism by exercising its rights under the World Trade Organization (WTO).
U.S.’s protectionist stance could have a wider economic impact as it could force global firms in other industries as well to rethink of their decision to expand in U.S. markets, warns Morgan Stanley.
Rajani Baburajan