It’s a well known fact that President Trump wants to bring jobs and foreign investments in the US, and truth be told, he was widely criticized by the “experts” after he slapped a thirty percent tariff on solar panel imports last week. However, as usual I might add, President Trump was proven right on the money, after one of China’s biggest solar panel manufacturers announced its intentions to build a plant in the United States. So, tariffs do work after all.
According to JinkoSolar’s official statement last Monday, their board of directors gave the approval for finalizing planning for constructing an advanced solar manufacturing facility in mainland US. The Chinese company’s decision was obviously tied to Trump’s new tariffs, as Jinko said it “continues to closely monitor treatment of imports of solar cells and modules under the U.S. trade laws.”
Obviously, by building a plant in the US, JinkoSolar will avoid the new tariffs on solar panels sold in the country. There are not much details to speak of in the official statement with regard to Jinko’s planned US solar panel factory. The Chinese company already has a subsidiary in the US, but it’s not clear whether they already have built production facilities here.
Trump’s new tariffs on solar panels announced last week were “sold” to the general public as the administration’s intention to protect US manufacturers and they followed a trade complaint made by 2 foreign solar panel manufacturers’s US subsidiaries. At the same time, the administration revealed higher tariffs on imported appliances like washing machines, a move which dealt a big blow to South Korean manufacturers like LG or Samsung. Trump’s actions were made in order to encourage more foreign investments in the US, i.e. more jobs, more money from taxes and so forth and so on. However, many “experts” criticized Trump’s actions, as usual.