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Trump’s administration tariff head-on with Huawei’s Solar-panel launch

Moupiya Dutta
Moupiya Dutta
She finds it interesting to learn and analyze society. she keeps herself updated, emphasizing technology, social media, and science. She loves to pen down her thoughts, interested in music, art, and exploration around the globe.

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As reports confirm the upcoming launch of Huawei’s solar-panel control devices is expected to clash on with the U.S. Tariffs made on Chinese electronics. President Donald Trump to impose a 25 percent tariff on imported solar panels which will directly jeopardize the stability and financial well-being of the local solar industry.

Trump in January put forward his decision by claiming that the tariffs on solar panels would create more jobs in the United States with manufacturers who make the equipment. But companies that install the panels or develop solar farms said the tariffs would create price hikes that could cause projects to be canceled and result in a layoff of workers.

The solar-panel control device as developed by Huawei has been an invention to develop a new generation of low-cost solar inverters to help in controlling and monitoring energy produced by solar panels for home use. The main aim of the Chinese company is to set out the products in the name of FusionHome among the consumers of the United States in this fall.

But the upcoming tariff levied on the Chinese electronics would leap up the expected price advantage as said by analysts and research firms. And to make it affordable for its house use consumers Huawei will have to reduce its margins or raise prices which will be beneficial for SolarEdge and Enphase Energy; the company’s rival producers.

The 25 percent tariff that is to be imposed on Chinese electronics as by Trump’s administration will be in effect from August 23, and as analyzed will affect the new Huawei product. A 25 percent tariff on Huawei Solar electronics launch might be enough to eat up the margins of cost-competitive Chinese manufacturers as said by an analyst, Iben Frimann-Dahl from Rystad Energy.

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