Two trade cases lead to stiff tariffs

Trump takes action on washing machines, solar products

President Donald Trump has imposed steep tariffs on washing machines and solar products, responding to two separate trade cases that sought to protect U.S. industry from a flood of cheap imports, including from China, the U.S. trade representative said Monday.

Robert Lighthizer, the U.S. trade representative, said the president had decided to accept the recommendations of his trade advisers, who carried out “an exhaustive process” to determine whether U.S. manufacturers were being harmed by imported washing machines and solar products.

The U.S. International Trade Commission, an independent body of trade experts, had also examined the cases and found that imports were hurting domestic manufacturers.

“The president’s action makes clear again that the Trump administration will always defend American workers, farmers, ranchers and businesses in this regard,” Lighthizer said.

For the solar industry, the president approved tariffs for the next four years. A tariff of 30 percent will be levied on imported modules and cells in the first year. That will fall to 25 percent in the second year, 20 percent in the third year and 15 percent in the fourth year. In each of the four years, the first 2.5 gigawatts of imported solar cells will be exempted from the tariff.

But the tariffs also threaten some of the very type of jobs that Trump has vowed to protect. Companies that install solar panels will be faced with the prospect of having to trim their workforces, as the tariff — which starts at 30 percent on the imported panels and gradually declines each year — threatens to substantially raise the price of solar power in the U.S.

For imported washing machines, the president approved a combined tariff and quota for the next three years. In the first year, the first 1.2 million washing machines that are imported will face a tariff of 20 percent, while all subsequent imports will have a tariff of 50 percent.

The United States had imposed a series of restrictions on cheap solar products from China to protect U.S. manufacturers in recent years.

But Chinese companies simply moved production to other countries and continued with plans to ramp up their production capacity, the U.S. trade representative said.

Wally Skalij / Los Angeles Times The Trump administration will impose hefty tariffs on the inexpensive imported panels that have driven the rapid expansion of solar power in the U.S., a move that industry groups warn will slow the spread of renewable energy.