The Domestic Effects of the Trump Administration's Solar Panel Tariffs
Haverford College. Department of Economics
Place of Publication
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Bi-College users only
Solar panel installations have become increasingly popular in the United States, but early in Mr. Trump's presidency, in 2018, the Trump Administration levied a uniform solar panel tariff with the alleged intention of protecting the domestic solar panel manufacturing industry. This thesis analyzes the impact of the 2018 solar panel tariff on domestic US consumers, both residential and commercial, in terms of number of solar panel installations and average installation price. Additionally, this thesis examines how the number of jobs in the United States solar industry has changed since the imposition of the Trump administration's solar panel tariff. The results demonstrate that the 2018 solar panel tariff prompts fewer solar panel installations for both residential and commercial consumers. This tariff is correlated with higher installation prices for residential consumers, but lower installation prices for commercial buyers. Additionally, this solar panel tariff resulted in fewer jobs in the US solar industry over the three-year period analyzed, which contradicts one of the intended goals of this tariff policy.