Ed Ballard

So these are some pretty punchy headline numbers, and no one is going to be paying a tariff rate of 3,500%, which is the rate that was imposed on some solar cells from Cambodia. At the low end, it's about 41%, which might be more manageable. Let's take a step back.

These are four countries where Chinese companies that dominate the solar industry have set up factories in recent years precisely to get around U.S. restrictions on imports. Now, to get ahead of this latest round of tariffs, they have been setting up factories in new places such as Laos and Indonesia, which aren't covered by these new tariffs.

These are four countries where Chinese companies that dominate the solar industry have set up factories in recent years precisely to get around U.S. restrictions on imports. Now, to get ahead of this latest round of tariffs, they have been setting up factories in new places such as Laos and Indonesia, which aren't covered by these new tariffs.

So if you're a solar manufacturer, you've had some time to set up new sourcing relationships and find new factories to supply the solar cells you need. And of course, that raises a possibility that this game of whack-a-mole will just continue.

So if you're a solar manufacturer, you've had some time to set up new sourcing relationships and find new factories to supply the solar cells you need. And of course, that raises a possibility that this game of whack-a-mole will just continue.

And we'll see a continuing race between domestic solar manufacturers complaining about low-cost competitors and the Chinese companies looking for new places to produce solar cells that will eventually find their way into the U.S. market.

And we'll see a continuing race between domestic solar manufacturers complaining about low-cost competitors and the Chinese companies looking for new places to produce solar cells that will eventually find their way into the U.S. market.

Well, this is where you get into the weeds a little bit. So these tariffs are imposed on solar cells. They're building blocks for solar panels. And basically the US is a long, long way from being self-sufficient in that equipment. When it comes to the next level up, assembling those solar cells into what are called solar modules, which are like the solar panels that sit on your roof. The U.S.

Well, this is where you get into the weeds a little bit. So these tariffs are imposed on solar cells. They're building blocks for solar panels. And basically the US is a long, long way from being self-sufficient in that equipment. When it comes to the next level up, assembling those solar cells into what are called solar modules, which are like the solar panels that sit on your roof. The U.S.

has a lot of that capacity. So if you're a company, some of them are Chinese, that are making solar modules in America, you'll say, well, look, I'm here, I'm boosting American manufacturing, but I can't get the stuff I need in the United States. I need to get it from somewhere. And we're going to move to another part of Southeast Asia.

has a lot of that capacity. So if you're a company, some of them are Chinese, that are making solar modules in America, you'll say, well, look, I'm here, I'm boosting American manufacturing, but I can't get the stuff I need in the United States. I need to get it from somewhere. And we're going to move to another part of Southeast Asia.

And at the same time, these tariffs also create more of an incentive for the U.S. to move up that manufacturing chain and start building the solar cells in the U.S. as well. But that just takes a long time. That was The Journal's Ed Ballard.

And at the same time, these tariffs also create more of an incentive for the U.S. to move up that manufacturing chain and start building the solar cells in the U.S. as well. But that just takes a long time. That was The Journal's Ed Ballard.