Are Solar Tariffs Sabotaging American Jobs? (My "Made in America" Panels Aren't...)

Discussion in 'Off Topic' started by Leo Breydon, Sep 23, 2024.

  1. So, I finally bit the bullet and went solar! Felt good to support American manufacturing, too – or so I thought. Turns out, my "Made in America" panels... weren't exactly made IN America.

    I stumbled across this whole Section 301 tariff thing (sounds like a robot uprising, right? ), and it seems like a HUGE mess for the solar industry.

    Basically, I'm worried that these tariffs, while maybe well-intentioned, are actually:

    Hurting American solar companies: Driving up prices and making them less competitive.

    Costing American jobs: Less demand for domestic panels means fewer jobs here.

    Making us reliant on foreign imports: Which seems kinda counterproductive...

    Am I way off base here?

    I want to hear from YOU:

    Did these tariffs impact your decision to go solar (or not)?

    Have you had any experiences with "Made in America" panels that weren't so American after all?

    How do we balance supporting domestic manufacturing with making solar accessible to everyone?

    This whole thing feels like a lose-lose situation, and I'm curious to hear other perspectives!
     
  2. insightman

    insightman Well-Known Member Subscriber

    I'm no tariff expert, but as I understand it, the theory of tariffs is to make goods from other countries more expensive so that the prices American companies charge for similar goods will become more attractive in comparison. One famous political candidate is promising he will enact many, many tariffs, claiming falsely that the foreign companies pay the tariffs, not the American customers.

    Tariffs are simply a tax on goods. However, they often cause the nations whose products are taxed to institute reciprocal tariffs on American goods. American farmers suffered huge losses when the Chinese government put tariffs on the crops they used to sell to China.

    I can't buy the new replacement for my electric MINI Cooper SE because the new 100% tariff on Chinese vehicles would make the car cost something like $70,000. No American company has plans to make cars anymore, much less a small car like a MINI Cooper. I'm glad my MINI is my favorite-ever car and hope it lasts many more years. I don't really want the Chinese replacement unless they can make it as lightweight as my MINI.

    However, solar panels are goods that America needs. Chinese subsidies to companies in their country made solar panels so inexpensive that American companies couldn't compete. Many went out of business.

    The tariffs on Chinese solar panels have, indeed, reduced demand, which, of course, reduces the number of jobs for American solar-panel installers. It's obvious that American companies will never be able to match the untariffed price of Chinese government-subsidized solar panels because they couldn't do it before the tariffs were instituted.

    Now the American govenment has to decide how important solar power is to the country. If the politicians want solar power to replace fossil fuels, but insist the solar panels must be American-made, then they will have to either subsidize the R&D to make less-expensive solar panels, or subsidize the customers who buy the more expensive American-made solar panels.
     
    Last edited: Oct 26, 2024
  3. Tariffs are definitely a doubled edged sword. Hard to say whether they are a net benefit or loss. If they are used strategically to force manufacturers not to off-shore and prevent foreign countries from "dumping" cheap good for the purpose of putting local manufacturers out of business, that could be good. But the line is often not clear. And too much protection can backfire if your domestic manufacturing becomes too inefficient and costly. I think that's what happened to UK's past car manufacturing. You need a balance.

    EV cars are an interesting challenge. The Chinese seem to be ahead with these. But how much of that is due to govt subsidy and support? Not sure. What is clear, though, is that domestics better catch up to stay relevant. Tesla were in the lead, but lately have to wonder if they are giving up the fight, too.

    As for solar panels, not sure if tariffs there are really helpful to this balance.
     
    Last edited: Oct 26, 2024
    insightman likes this.

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