President Donald Trump’s tariffs have hit solar panel imports, causing U.S. renewable energy companies to cancel investments and dragging down solar sector-related ETFs.
The Invesco Solar ETF (NYSEArca: TAN), the largest ETF dedicated to solar stocks, fell 7.3% year-to-date.
The solar sector looks dimmer this year after tariffs on solar panels caused U.S. renewable energy companies to cancel or freeze investments on over $2.5 billion in large installation projects, or more than double the $1 billion in new spending plans announced by firms to build or expand U.S. solar factories to capitalize on the new import taxes, Reuters reports.
The 30% tariff is slated to last four years, diminishing by 5% per year.
Trump originally announced the tariffs in January despite protests from most of the solar industry that action would stifle the quickly expanding solar industry.