The U.S. Department of Commerce ruled in favor of anti-dumping investigations against China-based solar firms on May 17. The range of punitive tariffs is from 31%-250%, depending on the firm, according to DigiTimes.
The move is supposed to protect U.S. domestic solar firms, but a Commerce Ministry spokesman, Shen Danyang, said, "The U.S. ruling is unfair, and the Chinese side expresses its extreme dissatisfaction." This conflict has further hurt U.S.-Chinese trade tensions, with the parties accusing each other of violating free-trade pledges by subsidizing their own manufacturers, according to Business Insider.
There are some U.S. solar companies that are opposed to the tariff and have warned that China might react against U.S. suppliers. The affects may include a higher cost of solar equipment and hindered efforts to promote renewable energy.
Business section: Investing ideas
Solar stocks in general haven't been doing well, particularly in the past few months., and several U.S. solar firms filed for bankruptcy in 2011. With strong arguments for and against the U.S. Department of Commerce ruling, it's unclear how U.S. solar companies will benefit going forward.
If you're interested in following the market's reaction to this news, use Kapitall's tools to compare and analyze different solar companies from the U.S. and China. (Click here to access free, interactive tools to analyze these ideas.)
1. First Solar
2. LDK Solar
3. Suntech Power Holdings
4. Trina Solar Limited
5. Yingli Green Energy Holding
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Danny Guttridge does not own any of the shares mentioned above. Data sourced from Finviz.