Earlier this year, the US government opened a new front in its war with China over solar panel manufacturing – tariffs designed to close the gap between U.S. and Chinese labor costs.

Tariffs don’t work, we have known that since the Depression of the 1930s was prolonged due to economic tinkering and boosting tariffs. Creating higher costs for a non-essential product, especially a non-essential product for a market that is only in existence due to government subsidies, drives down demand.

The day after the American presidential election, the U.S. International Trade Commission voted to saddle Suntech Power Holdings Co., Ltd. with a tariff of 35.97% on their silicon module imports from China, which are made by the parent company.  


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