Hey there ;-)

These are my own thoughts about the US-China PV trade tariffs.

My goal is to point out how solar installations are a good thing. And US should lower tariffs on PV imports.

Here are my points:

• National security:

It has been argued that by relying on Chinese solar panel imports, the US makes itself dependent on China in a critical part of the economy.

I disagree with this point of view:

Solar panels are a very durable product, and once installed, can last easily for 20+ years. There is no urgent, or immediate need to replace them, in case a US-China war breaks out. Therefore, the US does not make itself more dependent on China energy-wise by importing solar panels.

Actually, quite the opposite is the case IMO:

In case WW3 breaks out (let’s hope not but what if), then the US would be vulnerable by being dependent on fossil fuel imports that have to be shipped daily, or at least, regularly. By installing solar panels, they do no longer depend on recurring, regular imports. (Because solar panels only have to be imported once, not regularly).

• Economic arguments:

It is argued that by fostering the domestic solar panel production capability within the US, that could drastically make the domestic economy grow. It has been argued that instating tariffs on Chinese solar panel imports, and using the so-collected tariff money to subsidize the domestic solar panel market, would foster that goal.

I want to show that, while this is true, also the opposite is true:

Lowering tariffs has the consequence of providing even cheaper energy to the domestic economy, thus making all production (and therefore virtually every product in the market) cheaper, which stimulates the economy and increases the economy overall (price elasticity).

So we have to compare the economic benefit of producing solar panels domestically, against the economic boost that cheaper energy provides. I would say (due to my gut feeling) that the second clearly outweighs the first, so the economy actually profits in total, if solar panel tariffs are dropped, because energy becomes cheaper and stimulates the economy.

Edit:

To the downvoter(s), please explain why you disagree. Or is it just not the appropriate place to discuss these things? If so, where would be a better place?