How Trump’s latest tariffs could impact solar

Another day, another tariff announcement.

The Trump administration this week set tariffs up to 3,521% on the four countries in Southeast Asia that supply the U.S. with the majority of its solar imports, making yet another change to its trade policy.

The latest tariffs are the result of a year-long investigation that was started under the Biden administration, when domestic manufacturers alleged that foreign producers were inundating the U.S. market with excessively cheap products as a result of unfair government subsidies. Proponents of the tariffs say they should bolster America manufacturers who have been investing in U.S. solar production in years, but the added tax will still cause solar to become a more expensive investment for the average homeowner.

For a better understanding of how Trump's latest tariffs may impact the solar industry, let’s take a look at the most recent tariff announcements, how his previous tariffs affected the solar industry, and what it tells us about the types of trade policies we may see from the Trump administration moving forward.

Fears about increased costs and supply chain disruptions are valid, but Aaron Nichols, an advocacy specialist at Exact Solar, points out that there was a “lot of noise predicting the end of solar” when Trump began implementing tariffs in his first term.

The solar industry has now been through four rounds of anti-dumping and countervailing duty cases, plus the Uyghur Forced Labor Prevention Act (UFLPA), “which still detains billions of dollars worth of solar components at ports that have been proven to have no link to forced labor.” Yet, the market adapted and “posted record growth” in 2023 and 2024.

Even now solar remains the cheapest new energy source in the U.S., and “not even these tariffs will increase prices enough to change that,” says Nichols. After the Inflation Reduction Act passed, “solar installations jumped 51% year-over-year in 2023 and reached nearly 50 GW in 2024.” The United States has ramped domestic manufacturing up by more than fourfold since the IRA was passed, so its long-term trajectory is strong, despite the current policy creating “temporary turbulence.”

The solar industry is resilient and should able to overcome these tariffs. As Nichols says, “We’ve been here before, we adapted, and we’ll do it again.”

Stay informed on the latest industry news—delivered to your inbox each month. Sign up for EnergySage’s newsletter. 

Earlier in April, the Trump administration announced a 90 day pause on plans to enforce reciprocal tariffs, but it still moved forward with implementing a 10% tariff on most global trading partners and a 145% tariff rate on China, putting additional pressure on the solar industry. Tariffs increase prices and disrupt supply chains, and solar manufacturing isn’t immune to these impacts. Despite the potential upside for domestic manufacturers, as the tariffs are enforced, the cost of going solar will increase for homeowners across the U.S.

As U.S. trading partners and markets continue to absorb the shock of Trump's ever-changing tariff policies, it remains uncertain what additional short and long-term consequences will arise for the solar industry. While rising prices and manufacturing headaches are to be expected, it's too soon to tell how far-reaching the ramifications will be.

“Tariffs are like the game whack-a-mole. As soon as you crack down on manufacturing in one country, another springs up to take its place,” said Nichols.

For now, how the tariffs will play out is still coming into focus, but Nichols thinks it’s possible that domestic manufacturing could become a requirement to receive a tax credit, for example. One impact that seems clear so far, however, is that battery storage is likely to take a significant hit from the latest tariffs, as the U.S. still relies heavily on importing them from China.

The first Trump administration made enforcing tariffs a key part of its trade policy. In 2018, Trump imposed Section 201 tariffs on solar panels imported from foreign countries, aiming to bolster American solar manufacturers. While American solar panel manufacturing did see an expansion, installation costs for homeowners escalated as a result. 

However, during President Trump’s first term, the solar industry still experienced an expansion, increasing 128% and reaching 100 gigawatts (GW) of installed solar. Despite that growth, Trump's tariffs still negatively impacted the industry, according to the Solar Energy Industries Association (SEIA):

• Tariff increases led to 62,000 fewer solar jobs 

• Installation prices for homeowners increased 

• $19 billion in new private sector solar investment was lost

During his four years in office, former President Biden expanded on the tariffs that were originally imposed during the first Trump administration. In 2024, Biden raised tariffs on photovoltaic cells from 25% to 50%, and imposed anti-dumping laws meant to stop U.S. companies from importing underpriced solar imports.These changes presented a challenge for the solar industry by impacting the availability and cost of solar equipment. 

Increase in Section 201 and Section 301 Tariffs

In 2024, the Biden administration increased Section 201 tariffs on specific Chinese imports. Under the CHIPS Act, this increase included certain solar panel components, such as the silicon used in solar cells. At the end of the year, the U.S. Trade Representative’s office also announced a 25% increase on Chinese-made solar wafers and polysilicon. Duties on certain tungsten products also rose from zero to 25%. Those hikes went into effect on the first day of January 2025.

Enforced Anti-dumping Laws

The Biden administration also enforced anti-dumping laws and countervailing duty  investigations in 2024 in major solar manufacturing countries, including Cambodia, Malaysia, Thailand, and Vietnam. Those laws are meant to prevent foreign solar panel manufacturers from flooding the U.S. market.

Despite potential increases in costs and installation, solar is still a smart investment and a growing industry. Since 2000, more than 219 gigawatts (GW) of solar capacity has been installed nationwide, which is enough to power over 37 million homes.

According to Nichols, solar is still a great “long-term choice for homeowners and business owners looking to cut energy costs and contribute to the stability of our electric grid.” Shifts in policy will impact the cost of solar in the short term, “but that doesn't change the fact that solar technology is cheaper, more efficient, and more reliable than it's ever been.”

Fewer imports from Southeast Asia and China could disrupt the supply chain

In 2025, experts like Adam Bushell, director and electrician at AB Electrical & Communications in Sydney, Australia, say we should “expect a period of transition in which households may encounter delays or increased expenses while the sector changes.”

An increase in tariffs on Southeast Asia and China likely means an increase in production costs and limited inventory for the short term. However, that may benefit America’s solar manufacturers by reducing competition in the long term.While a major reduction in solar equipment coming in from other countries is an opportunity for American companies, it means they’ll have to work to stabilize the supply chain in order to meet consumer demand.

“An expanded domestic supply chain could ultimately stabilize prices, but that transition could take years,” Nichols says. “In the short term, it would likely shrink the market.” So while these increases may mean it will be harder and more expensive to get solar equipment quickly in 2025, it could mean a more sustainable solar supply in the long run.

New tariffs will likely increase upfront costs

Both new and higher tariffs mean the cost of installing solar is likely to rise in 2025. While some of Trump’s newest tariffs have already gone into effect, solar costs probably won’t rise immediately. If you plan on installing solar in 2025, Bushell recommends that homeowners begin gathering quotes as soon as possible, “since locking in contracts before tariffs have a significant impact on price may save them money.”