Question

The Trump administration recently implemented tariffs on imported solar panels. American solar panel manufacturers have pressed for tariffs on imported solar panels for several years; however, companies that install solar panels are very much opposed to tariffs. Use the supply and demand model to explain why different players in the US solar energy industry have opposing views on tariffs on imported solar panels.

Answer 1

Yes,different players in the US solar energy industry have opposing views on tariffs on imported solar panels.

The American solar panel manufacturers wanted tariff to be imposed on the imported panels in order to tackle competition and increase demand of their products atleast in the American markets(Across the other global markets,their demand is low as they are priced comparitively higher)

The companies that install solar panels are opposing the government's move as it will cause issues in terms of compatibility and price.The previous ones which they have installed might not be compatible (or) have different specifications from the ones being produced by American companies.Also the American companies might increase/maintain the higher price as they their competition is eliminated by imposing import tariffs.

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