This is a stunningly clear example of why trade wars generally backfire.
The Obama Administration last month instituted punitive tariffs on Chinese solar cells, citing unfair competition and dumping. China’s response may well be to impose duties on silicon imported from the US used to make the panels.  The victim here will be the US solar industry, which will face higher costs at precisely the wrong time, when subsidies and tax breaks are expiring.
Here we go again……..So if we impose taxes on imported Chinese solar panels, and the Chinese impose taxes on the silicon they import to make the panels, then that will make US solar manufactured solar panels cheaper in price comparisons. I don’t see how that’s a bad thing. It’s not like China is going to import less silicon from us and we’ll just be buying less solar panels from China. Economics doesn’t have to be rocket science and can be explained in simple terms, most of the time.
No response yet. We shouldn’t fear retaliation cause true trade wars are bad but, we are a ways away from that. I support expanding tarrifs to protect domestic industry. Strategically.
@MrLawrence2008
China has said they are considering raising tariffs on silicon imported from the US for solar panels.