Thoughts on the Solar Tariffs

The Trump Administration has enacted tariffs on imported solar cells and larger modules (as well as on washing machines). In general, tariffs are counterproductive, because they only help some producers at the expense of others, and they unambiguously raise prices for consumers. That logic applies to this case as well. However, insofar as the American solar companies that import cells and modules are some of the biggest losers in this deal, they have little grounds for complaint, as they are already receiving lavish benefits from provisions in the tax code. Two wrongs don't make a right, to be sure, but employment in the renewables sector is arguably closer to the "natural" level after this latest move by the federal government.