Trumps solar tariff backfires: It hits red states and U.S. taxpayers harder than China

[babylonsister]

Trump’s solar tariff backfires: It hits red states and U.S. taxpayers harder than China
"Southern states like Texas, Florida, Georgia, and South Carolina among the most impacted."
Joe Romm
Jan 23, 2018, 2:53 pm


On Monday, President Donald Trump slapped a 30 percent tariff on imported solar cells and panels.

But while the White House said the goal was to punish China for an industrial policy aimed at taking over the global solar market, the harsh reality is that the president is going to end up punishing the states that voted for him the most. On top of that, U.S. taxpayers are actually going to end up paying for half of any tariff.

Analysis provided to ThinkProgress by GTM Research concludes, “new and emerging state markets are disproportionately affected [by the new tariff], with southern states like Texas, Florida, Georgia, and South Carolina amongst the most impacted by the tariffs.” All of those states voted for Trump in the 2016 election.

MJ Shiao, GTM’s head of Americas Research, explained in an interview that the states hurt the most by the new tariff are the “hot markets that are on the cusp of becoming economic for solar,” or that just became economic thanks to the steady and rapid price drops for solar cells and panels. Those states are disproportionately found in the South and Southeast.

In addition to punishing emerging markets in several red states, experts say the new tariff will also backfire for all U.S. taxpayers. “The U.S. federal government will end up footing some of the bill for Trump’s decision,” Hugh Bromley, a Bloomberg New Energy Finance (BNEF) solar analyst, said in an email. “Half of any increase in system costs will be offset through the tax code via the Investment Tax Credit and depreciation.”

more...

https://thinkprogress.org/trump-solar-tariff-backfires-36cb1c4f7fbc/

[LakeVermilion]

1. The world economy is so vast and interrelated that any attempt to control

the marketplace will have many unintended consequences. Even after negotiators spent years putting together NAFTA, the were consequences not considered by governments. To have Trump move on a whim to push a tariff as a favor to a contributor, means that he is slighting another contributor. Governing is a sticky business.

[workinclasszero]

2. Trump has 4 long years to destroy the economy

Then, once again, a democratic Congress and President will try to pick up the pieces of a shattered America while the MSM and the republican right dog them every step of the way and place the blame for the poor economy on democrats of course.

I've seen this damn movie before and it stinks!

[Farmer-Rick]

3. It was a give away to big oil, including Russian oil

Solar has been gettig cheaper and cheaper and oil is not. By overcharging for solar, the oligarchs get to squeeze us a little longer. And now Russia doesn't have to worry about the US setting an example for the use of solar.

But solar power is the new telephone and no matter how hard the telegraph or oil corporations try, solar is here to stay.

[matt819]

4. And let's not forget the likelihood of retaliatory tariffs

Especially from China. The Chinese market is vast. Tariffs on soybeans and pork products would hurt American farmers and those employed in those industries. So, in addition to the US tariffs likely resulting in the loss of tens of thousands of jobs and higher prices on washing machines, retaliatory tariffs will result in job losses and possibly tremendous impacts on small farmers.