This website uses cookies to ensure you have the best experience. Learn more

U.S. Slaps High Tariffs On Chinese Solar Panels

749 words - 3 pages

Imports from China have a large effect on the economy of the United States of America, as they cause a decline in demand for regional goods. Chinese industries follow a strategy called sporadic dumping, where a product is sold for less than the production cost or the price of the product in the country. The article “U.S slaps high tariffs on Chinese solar panels” in The New York Times describes the attempts by the United States to prevent the failure of national companies in the solar panel industry. A tariff can be defined as a tax on imports, which is determined by the consequence of the import`s flow into the country, in order to protect local producers.
The 31 percent antidumping tariff on Chinese solar panels is essentially to prevent the expenditure of the Chinese industry in the United States. Despite the fact that solar panels are beneficial for the environment, the price would increase significantly due to the tariff. The domestic price of the solar panels will increase, along with an increase in domestic production, as the loss of foreign solar panels has to be compensated to meet the demand. However, a higher price results in a decrease in demand. As Mr Ben Santarris, who is a company spokesman, mentioned: “We consider this a bellwether case.” It underscores the importance of manufacturing to the U.S. economy.” Hence, the tariffs are beneficial to American solar panel manufacturers, as the producer surplus increases. This is demonstrated in the graph below:

PW is the price of solar panels before the tariff and S(world) demonstrates the world supply. After the introduction of the tariff on solar panels, the world supply increases to S(world)+tariff and the price to Pw+T. It can be seen that the quantity demanded decreases from Q2 to Q4 due to the increase in price. The domestic producers try to maximise profits by increasing production to Q3. This results in the revenue increasing from g to g+a+b+c+h. The supply of the Chinese solar panel firm is Q3Q4. The firm makes Pw+T, which they have to use to pay the tariff. The domestic solar panel producers will produce at an inefficient level, which is at Q1Q3. The level of production for the Chinese...

Find Another Essay On U.S. slaps high tariffs on Chinese solar panels

Trump's Tariff on Washers compare with U.S and International. - Bus 201 - Research Paper

2209 words - 9 pages Trump's Tariffs on Foreign Washing Machines Analysis Name: Wai-Yan Htat Aung Wednesday, February 7, 2018 11:02 PM Introduction According to Ana Swanson and Brad Plumer, " WASHINGTON — President Trump slapped steep tariffs on imports of washing machines and solar energy cells and panels on Monday, the first major step by the administration to erect the kind of trade barriers Mr. Trump has frequently said are necessary to protect manufacturers in

Renewable Energy: Solar Power Essay

789 words - 4 pages -reflective coating on a protective sheet of glass to protect it and to prevent the photons from reflecting off the silicon back at another object. Solar panels are the perfect solution if you have high electric bills and live in a hot and sunny climate. Once the solar panels are installed, major maintenance won’t be required for a couple of decades until the solar panels break, but you will need a yearly check to ensure that the solar panels are

Solar Energy

1016 words - 4 pages . Solar energy has undergone many stages throughout its existence, especially within the United States. At the beginning of its discovery, carried out through its peak in popularity around the 40’s and 50’s, solar energy enjoyed its time in the spot light. Due to limits on where solar plants can be built, inefficiency, unreliability and high prices, the use of this fairly environmentally friendly, renewable energy source has dwindled. While some

Exploring the Potential of Solar Power

3451 words - 14 pages . The northeast is using state government incentives in order to encourage its relatively dense populations to install more solar panels, both on their homes, and in discrete locations as utility scale power sources (Decum). The mid-west, with its low population density, has neither the pressing convenience of the southwest nor the population density of the northeast. Most of these states rank as some of the least energy consumptive states in the

Solar Power

1170 words - 5 pages solar panels but the outcome still shows less environmental and health hazards than with coal and oil. This in itself is a cost saving benefit to not only the consumers but the manufacture of the panels. The states will also save here due to lower cost on health insurance. Works Cited Brad Plumer (2013) Germany has five times as much solar power as the U.S. — despite Alaska levels of sun, retrieved from: http://www.washingtonpost.com/blogs

An Introduction to Solar Energy

1640 words - 7 pages provide enough electrical current to replace or provide the needs of the electrical system. One 4 foot by 8-foot panel that is located in direct sunlight can provide 450 watts of electricity, which is equivalent to 51.3 kWh/month. The average home in the U.S. uses 903 kWh of electricity monthly; so, the homeowner would need room on the homes roof or another location that gets direct sunlight during the day for about 17 solar panels. Some other

A look at renewable energy

1640 words - 7 pages provide enough electrical current to replace or provide the needs of the electrical system. One 4 foot by 8-foot panel that is located in direct sunlight can provide 450 watts of electricity, which is equivalent to 51.3 kWh/month. The average home in the U.S. uses 903 kWh of electricity monthly; so, the homeowner would need room on the homes roof or another location that gets direct sunlight during the day for about 17 solar panels. Some other

Solar Energy

1023 words - 5 pages to non-renewable sources. Such as their expensive price. The cost of solar panels depends on the location of panels, size of building, and partial or full installation. The initial price can vary from about $50,000 to $100,00, depending on those variables. Although, after about twenty-five years or more of usage, the panels should virtually pay for itself by lowering the electric bill. It is predicted that by 2025, the overall cost of solar

SCIENCE ESSAY

1072 words - 5 pages electricity, solar panels are also pollution-free, noise-less and free from radiation. In addition to that, solar panels are one-time installments. Meaning that if you installed solar panels into your home, you would not be required to pay monthly/yearly installments anymore. This therefore saves families lots of money in terms of not spending a lot on paying bills. Diagram of the comparison of the consumption to the conservation of different types of

The Energy Crisis

1073 words - 4 pages renewable. The other traditional sources like oil, coals etc. are not renewable and there is a threat of running out these limited sources. In case of solar panels, there is no such threat. They are not likely to cause any significant pollution and also solar panels do not make any noise pollution, while the other technologies make unbearable noise pollution. Solar panels do not require high maintenance because there is no rotating part in it. They

Macroeconomic Analysis of Solar Panel Industry

1829 words - 7 pages the supply which involves the cost. All the hype about the environmentally friendly power generation technology seems to be able to maintain the decent level of demand for the next several years and the subsidy from the U.S. federal government to provide the incentives for installing solar panels should help keep this high demand. On the other hand, the consumption behavior of people can largely be influenced by the macroeconomic events in the

Similar Essays

The Effects Of High Tariffs On Agricultural

732 words - 3 pages result new tariffs were created to help the north and eventually the Missouri compromise put the icing on the cake for the south. Before the civil war, agriculture was the main moneymaker prior to the industrial revolution. To plant, grow and harvest these crops, the nations used slaves. Eventually Eli Whitney invented the cotton gin. With the new invention of the cotton gin, it seemed that the need for slaves would dwindle. Unfortunately, the need

"U.S. Immigration 1875 1910" On Immigration Into The U.S. And The Measures The U.S. Took To Limit Immigration. One Main Focus Is Chinese Immigration To The U.S

1097 words - 4 pages the regulation of immigrants is a federal responsibility. As the number of immigrants rose in the 1880s and economic conditions in certain areas worsened, Congress started to use immigration legislation. The Chinese Exclusion Act was one such example. Under this act, passed on 6 MAY 1882, states "the coming of Chinese laborers to this country endangers the good order of certain localities within the territory thereof." As a result, Angel Island was

Microeconomic Analysis: Installation Of Solar Panels

2480 words - 10 pages the global demand for solar energy hoping to increase U.S. market share for solar panels. However, many people are still doubtful of the effective of solar energy as an alternative source of energy whether at present or in the future. Companies intend to charge high prices for products that are using new technology to manufacture affordable solar panels and recover the cost of investment in technology within a short period (Smock et.al, 2007

Success Of Envision Solar Essay

1439 words - 6 pages sun in order to produce energy. On overcast days, radiation still seeps through the clouds and can be harnessed by solar panels (Beyond Now Myth Busting). Sustainable projects are very important for the future of our country and the world. The amount of carbon dioxide released into our atmosphere from burning fossil fuels has caused the global temperature to increase by about 1.2 degrees since 1970 (U.S. and Global Temperature). If nothing is