Trump announces tariffs on imported solar and washing products

On Monday, Jan.22, the Trump administration announced heavy tariffs on solar products and washing machines produced abroad – 30 and 50 percent, respectively.

Most of these products are imported from Asian countries. By introducing these tariffs, President Trump is making good on a promise to crack down on trading partners which some argue are harmful to domestic manufacturers, according to a USA Today report.

He has stated that the move will “benefit our consumers and… create a lot of jobs,” according to a Los Angeles Times article.

This decision is intended to increase the number of domestically-manufactured products and make the U.S. economy less reliant on China, the number one producer of solar panels in the world.

The tariffs have been criticized by lawmakers and trade experts alike, who warn that the tariffs will not create jobs, will raise prices, and will ultimately be harmful to the U.S. economy.

The Wall Street Journal reported that South Korean electronics giant LG would be raising its washer-dryer prices by $50, “as a result of the trade situation,”  LG executive, Thomas Yoon said.

This decision is also expected to deal a major blow to the renewable energy industry, which as a whole has been doing very well lately, according to Wright State Mechanical & Materials Engineering Professor James Menart.

A 2017 Levelized Cost of Energy report (LCOE) from Lazard shows that natural gas, wind and solar energy “are now cheaper on a lifetime basis” compared to coal and nuclear energy, said Head of Lazard Jonathan Mir, in a video published by the company.  “The implication… is that those older technologies on an economic basis should be eventually forced to retire.”

Over half of installation comes from renewables, according to Menart. Not only is renewable energy economically competitive, but “it is competing on its own without subsidies against traditional fossil fuels... [and] is being installed at large rates relative to fossil fuels” he said. “The nation is turning toward renewables… because the price is right.”

The renewable energy industry is expected to be impaired by the tariff, considering that it relies on imports for 80 percent of its supply. The Solar Energy Industries Association estimates that roughly 23,000 solar jobs will be lost as a result of the tax on solar imports.