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After the Biden administration doubled Section 301 tariffs from 25% to 50%, the Trump administration has added another 10%. President Donald Trump issued an executive order on February 1, 2025, adding a 10% tariff on certain goods shipped from China. The tariffs went into effect yesterday, February 4, 2025. The order also calls for 10% tariffs on “energy resources” imported from Canada and Mexico. Tariffs on goods imported from Mexico and Canada are delayed by one month. The executive order’s definition of “energy resources” includes solar-grade polysilicon, solar cells, and wafers, but not finished solar modules. Imported solar energy resources, including polysilicon, wafers and solar cells from China, are now subject to 60% tariffs under Section 301. In May 2024, the Biden administration doubled tariffs on solar cells from China from 25% to 50%. In December, the Biden administration also doubled the 25% tariff on polysilicon to 50% and added solar wafers to Section 301, setting the tariff at 50%. Both administrations have supported imposing tariffs on solar products from China, in part as a way to boost U.S. solar manufacturing. But establishing robust polysilicon, ingot and wafer production outside of China may prove difficult. In 2022, China reached an 89% global share of solar-grade polysilicon, which has only increased since. In 2024, global oversupply caused prices to plummet. Additionally, amid uncertainty caused by the Trump administration’s freeze on federal spending on climate and energy, announced factories in the United States are now on hold. Premier Energies announced it was halting plans for a 1 GW solar cell factory in the United States, and KORE Power paused plans for a battery manufacturing plant in Arizona. |
