June 7, 2018 | By RGR Marketing Blog

Trump’s Solar Tariffs Will Deal Serious Damage to the Industry as a Whole, Especially for African Americans

It’s the very beginning of the post Trump tariff era in the solar power industry and research groups are already predicting serious job loss across the country. It may remain to be seen just where and when these job losses will come, but one thing seems certain—demographics that saw the largest increase in solar industry jobs during the growth years from 2010 to the present will also be hit the hardest by tariff-related job losses.

Chief among these groups are African American solar workers. While percentage share of jobs in the solar industry has remained flat or decreased marginally for Asians, Mexican/Latino workers, whites and other groups, African Americans have been steadily capturing a greater and greater percentage of jobs in the industry – jobs that may be disproportionately affected by tariff-related job loss.

Where Did the Tariffs Come From and Why Were They Enacted?

Last year, two failing solar panel manufacturers (one a German company operating in the U.S., another, a Chinese-backed U.S. company) lobbied for tariff protection from the falling cost of imported solar panels. President Trump reasoned that a tariff on imported solar panels might help U.S. manufacturers, and in February enacted a 30% tariff on imported panels and other solar components.

Since Trump began to talk about enacting the tariffs, many industry insiders, researchers, and trade groups have been vocal in their challenges to the idea that such a tariff would do anything for American solar manufacturers. In fact, recent research indicates that job losses in the solar industry that were sustained in 2017 will be eclipsed by the losses we will see once the effects of the tariffs trickle down to the level of installers.

How Will African Americans Be Disproportionately Affected?

Understanding why African Americans as a group captured a larger percentage of available jobs in the solar industry over the last few years is key to understanding how and why they may be affected by the projected job losses to come.

The reason cited by most experts is the growth of jurisdictions with new solar policies that happen to include larger-percentage populations of African Americans to begin with. Another key reason for African American job growth in the industry is the launch of the NAACP Solar Equity Initiative.

But do either of these factors make African Americans in the solar industry any more vulnerable to tariff-related job loss than their Latino, white, or Asian coworkers? Probably not. Despite the fact that African American workers have captured a larger percentage of solar industry jobs over the last few years than other groups, there is no direct reason that they should lose a disproportionate amount of those jobs.

Still Not Good News for the Industry

It may be too early to tell just where in the industry the tariff-related fallout will land and whose jobs are most likely to be affected. But with costs projected to rise and with ongoing uncertainty regarding the current administration’s position on tax breaks for solar installation, the coming loss of business will likely hit everyone, African Americans included.

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