Trump's Tariffs Reshape U.S. Solar Industry
President Trump's administration has implemented a series of tariffs and restrictions on solar energy resources and related materials, aiming to boost domestic manufacturing and reduce imports. These changes, which began in April 2025, have significantly impacted the U.S. solar industry and its supply chain.
In April 2025, Trump introduced a 10% baseline tariff on solar products. This was followed by an executive order in February, adding a 25% tariff on steel and aluminum, key materials in solar manufacturing. Unexpectedly high Anti-Dumping and Countervailing Duty (AD/CVD) tariff rates were also assessed on solar suppliers from four Southeastern Asian countries in the same month, further increasing costs.
The impact of these tariffs was amplified by expanded Section 301 tariffs, subjecting solar energy resources to 60% tariffs. The Republican federal budget bill included new, more stringent Foreign Entity of Concern (FEOC) restrictions, aiming to increase domestic solar manufacturing and reduce imports. New laws require solar projects starting construction in 2026 to contain 40% content with no 'material assistance' from prohibited foreign entities.
In June 2025, the U.S. government increased the tariff on steel and aluminum to 50%. A petition requested investigations into 'illegal trade practices' by manufacturers in Laos, Indonesia, and India, which could further disrupt U.S. solar supply. This came after a series of tariff increases on steel, aluminum, copper, pharmaceutical products, semiconductors, household steel-containing appliances, and wood-related goods between June and October 2025.
These changes have significantly affected industries beyond solar, including German automobile manufacturers and other sectors relying on imported materials.
The U.S. solar industry, heavily reliant on imports in 2024 (around 75%), faces substantial challenges due to the Trump administration's tariff policies. These changes aim to promote domestic manufacturing but may increase costs and disrupt supply chains. The long-term effects on the U.S. solar market and related industries remain to be seen.
