Solar stocks jump after report that Biden administration will suspend tariffs
SunPower technicians installed P-Series panel manufacturing technology in its Hillsboro manufacturing plant on November 7, 2018,
Steve Dipaola | Reuters
Premarket trading on Monday saw solar energy stock rise following reports that the Biden administration would suspend tariffs for four countries’ solar panels.
President Joe BidenFor solar panels, we will declare a tariff exemption of 24 months Reuters reportedTo promote domestic production, you can use the Defense Production Act. As a result of a Commerce Department probe into Cambodia, Malaysia and Thailand, the Commerce Department has created additional obstacles for importing equipment.
In a note to clients, Mark Strouse, JPMorgan analyst, stated that if confirmed, the announcement would be a positive for our coverage. This is especially true in the utility-scale market which has been in uncertainty since late March’s US Department of Commerce investigation into AD/CVD.
As the rise in energy prices worldwide has caused war in Europe, the tariffs have been criticized more than ever. Biden first announced that the tariffs had been put into place by Trump’s administration. four-year extension in February.
The market was sour about unprofitable growth firms last November and solar stocks have been in decline since then. The sector is showing signs of improvement in recent weeks. This is the Invesco Solar ETF (TAN)More than 27% has been gained from the lows of May.
In part, the optimism of a Democratic administration to increase federal support for this industry was responsible for the rise in solar stocks between 2020 and 2021. But, Congress voted down the Build Back better bill last year. It would have added clean energy spending.