The U.S. solar sector faces mounting headwinds as new tariff policies impact major players like First Solar and threaten wider project development. A recent social media post by "Trunk" succinctly captured the industry's apprehension, stating, > "first solar, now this?" highlighting a sequence of challenging developments. This sentiment reflects growing concerns over trade policies affecting the domestic clean energy transition.
First Solar, a leading American solar module manufacturer, recently announced a revised financial outlook for 2025, citing significant economic headwinds from new tariffs. CEO Mark Widmar indicated that these tariffs, specifically those imposed by former President Donald Trump, are expected to heavily impact the company's manufacturing facilities in India, Malaysia, and Vietnam. This adjustment led to a notable plunge in First Solar's stock following the announcement of its first-quarter 2025 financial results.
Beyond First Solar's specific challenges, the broader U.S. solar industry is grappling with a new wave of tariffs and trade investigations. The Biden administration recently doubled duties on Chinese solar cells to 50%, aiming to protect domestic manufacturing. Concurrently, ongoing investigations into whether solar cells and panels from Southeast Asian nations are circumventing existing tariffs are creating widespread uncertainty.
These probes, targeting imports from Malaysia, Thailand, Vietnam, and Cambodia, come as a two-year tariff waiver on these critical supplies is set to expire. The Solar Energy Industries Association (SEIA) has voiced concerns that these cumulative trade actions are causing project delays and cancellations across the country. Developers are finding it increasingly difficult to secure financing and plan new solar installations amidst the unpredictable policy landscape.
The reliance of the U.S. solar industry on imports, with over 80% of panels originating from Southeast Asia, makes these tariff decisions particularly impactful. While the Inflation Reduction Act (IRA) aims to boost domestic production, the concurrent trade disputes risk counteracting these benefits by increasing costs and slowing the deployment of solar capacity. Industry stakeholders are advocating for policy stability to ensure the nation can meet its ambitious clean energy targets.