As experts expected, the U.S. International Trade Commission announced Friday that it found solar panel imports injurious to American producers.
The ITC is now expected to impose tariffs or other penalties on foreign sellers under Section 201 of the Trade Act of 1974. Exact measures will be announced by Nov. 13.
Bloomberg noted this gives President Donald Trump "an opportunity to score political points on three priorities: He can slap a tariff on China and argue he’s protecting U.S. jobs, all while undermining the economics of an industry that competes with coal."
Chinese solar stocks immediately plunged on the news, justifying short sellers advised earlier this week by Axiom’s Gordon Johnson. SunPower Corporation (NASDAQ: SPWR) fell 2.9 percent, Canadian Solar Inc. (NASDAQ: CSIQ) 2.2 percent and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO) 4.7 percent
Meanwhile, American competitors soared. First Solar, Inc. (NASDAQ: FSLR) initially spiked up 6.8 percent off intra-day lows and continued higher after a brief pullback. At time of publication, it was up 3.4 percent.
Benzinga does not provide investment advice. All rights reserved.
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