Trade wars. China may retaliate against US on solar tariffs

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.