Just as Americans are paying near $4/gallon of gasoline, today the U.S. Commerce Department announced that it was imposing
tariffs on Chinese manufacturers of solar panels. The tariffs are being imposed because -- horror of horrors! -- the Chinese government was subsidizing their own solar panel manufacturers. Even worse (in the Fed's eyes at least), the Chinese were selling panels to American customers at prices below cost. No word yet on how big the tariffs will be, but certainly we can count on the cost of solar panels rising. Politically this is a bit of a head-scratcher; it should alienate the environmental crowd and there is no union of solar panel makers to placate.
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