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201 Trade Case Update: Trump Administration Imposes Tariff on Imported Solar Panels

201 Trade Case Update: Trump Administration Imposes Tariff on Imported Solar Panels

After months of uncertainty, the Trump administration announced on Monday that it is imposing a 30% tariff on imported solar cells and modules, which will step down 5% each year thereafter for a duration of four years. In addition, the first 2.5 gigawatts of imported solar cells are exempted from the tariff each year.

Safeguard Tariffs on Imported Solar Cells and Modules
  Year 1 Year 2 Year 3 Year 4
Tariff Increase 30% 25% 20% 15%

The tariff comes after a ruling by the U.S. International Trade Commission (ITC) that the U.S. domestic industry was seriously injured by the import of solar panels and subsequent recommendations made by the ITC as to the amount of such tariff, which we discussed in our blog post here.

According to a statement released by the sector’s primary trade organization, the Solar Energy Industries Association, it believes the decision effectively will cause the loss of roughly 23,000 American jobs this year and will result in the delay or cancellation of billions of dollars in solar investment.

While many were hoping for a lower tariff, the market had already begun pricing in substantial tariffs with the uncertainty that was in the market regarding the tariffs. The final tariffs were generally in line with the recommendations from the ITC and were much lower than the tariff rates requested by petitioners Suniva and SolarWorld.

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Legal, Business, Jeffery Atkin, Foley Lardner, Environmental Attorney
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Jeffery R. Atkin is a partner and business lawyer with Foley & Lardner LLP. His areas of practice cover a broad range of business and financial matters, including renewable energy, project finance, private placements, mergers and acquisitions, joint ventures, real estate development and equipment procurement and leasing. Mr. Atkin is chair of the Solar Energy Team, co-chair of the Energy Industry Team, and a member of the Latin America Practice.

Mr. Atkin’s experience in renewable energy and project finance includes representing developers,...

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Jason W. Allen, Foley Lardner, Energy Industry Lawyer, Finance Attorney
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Jason Allen is a partner and business lawyer with Foley & Lardner LLP, where he is a member and co-chair of the Energy Industry Team. He is a member of the Finance & Financial Institutions, Transactional & Securities, and Private Equity & Venture Capital Practices. Mr. Allen’s practice focuses in the areas of mergers and acquisitions, private equity, finance, and general corporate and commercial law, with a particular emphasis on transactions in the energy industry. 

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Jason Britt is an associate and litigation lawyer with Foley & Lardner LLP. Mr. Britt has represented clients in a number of industries, including the manufacturing, health care, insurance, and investment industries, in complex and sensitive matters before judicial and arbitral forums across the country. These engagements have included matters involving allegations of fraud, breach of contract, breach of fiduciary duty, and negligence. He is a member of the Business Litigation & Dispute Resolution Practice and the Automotive Industry Team.

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