Trade war tipped as Trump signs off on tariffs for overseas imports
● Imported washing machines and solar power parts affected
President Donald Trump has signed a measure imposing tariffs on imported solarenergy components and large washing machines in a bid to help US manufacturers.
The administration said the decision was part of Mr Trump’s pledge to put American companies and jobs first.
The administration is imposing an immediate tariff of 30 per cent on most imported solar modules, with the rate declining before phasing out after four years.
For large residential washing machines, tariffs will start at up to 50 per cent and phase out after three years.
The US solar industry is split over the issue. Two small subsidiaries of foreign companies that made solar cells in the US favour tariffs, but a larger number of companies that install solar-power systems said their costs would rise and jobs would be lost.
The Republican’s decision followed recommendations for tariffs by the US International Trade Commission.
“The president’s action makes clear again that the Trump administration will always defend American workers, farmers, ranchers, and businesses in this regard,” US trade representative Robert Lighthizer said in announcing the decision.
Not everyone agrees the move will work in favour of Americans, including Nebraska Republican Senator Ben Sasse. He said his fellow Republicans needed to understand that tariffs are a tax on consumers.
“Mums and dads shopping on a budget for a new washing machine will pay for this, not big companies,” he said.
Germany criticised Mr Trump’s plan, with economy minister Brigitte Zypries saying Germany campaigned for “fair and free trade and against protectionism”.
Ms Zypries said she was concerned Mr Trump’s decision could trigger a new trade war with China and South Korea, which in turn would have repercussions for Europe and Germany. She said “only strong global trade with open markets provides growth, jobs and innovation”.
China accused Mr Trump of jeopardising the multilateral trading system by taking action on complaints under US law instead of through the World Trade Organisation.
“The US side once again abused its trade remedy measures,” a commerce ministry statement said. “China expresses its strong dissatisfaction with this.”
Mexico said Mr Trump’s decision not to exclude it from the measures was “regrettable”.
“Mexico will use all available legal resources in response to the US decision to apply protections on Mexican washing machines and solar panels,” Mexico’s economy department said.
The tariffs were sought last year by Suniva Inc, which filed for bankruptcy protection in April, and the US subsidiary of Germany’s Solarworld. They said that a nearly 500 per cent increase in imported solar panels over five years led to a ruinous price collapse. Nearly 30 US solar manufacturing facilities had closed in the past five years, they said, as China plotted to flood the global market with cheap products.