Here's What Trump's Tariffs on U.S. Imports Are Doing to Markets

• January 23 2018
• Adam Haigh

President Donald Trump’s move to crack down on what he sees as unfair competition to U.S. firms reverberated around the world as investors assessed the impact on companies hit by tariffs on solar panels and washing machines.

President Donald Trump’s move to crack down on what he sees as unfair competition to U.S. firms reverberated around the world as investors assessed the impact on companies hit by tariffs on solar panels and washing machines.

American beneficiaries such as First Solar Inc. climbed more than 6 percent in after-hours trading Monday in New York. In Seoul, washing-machine maker LG Electronics Inc. tumbled more than 5 percent within the first 15 minutes of trading before paring losses. Samsung Electronics Co., which also counts those appliances among its many products, shrugged off the news.

The declines in some shares stood out as broader Asian equity benchmarks marched higher Tuesday. At the same time, muted moves in many stocks suggested investors had been well prepared for the measures.

The U.S. will impose new duties of as much as 30 percent on foreign-made solar equipment and as high as 50 percent on imported washing machines, the U.S. Trade Representative’s office said Monday.

Companies reacted quickly: the decision means everyone will pay more, Samsung Electronics said on its website. 

Fears of a revival of the Trump-China trade war had already flared: read more here.

More than 80 percent of U.S. solar installations use imported panels, data show. The majority of these come from Asia.

Chinese solar stocks showed a muted reaction as trading began in China and Hong Kong. LONGi Green Energy Technology Co. and GCL-Poly Energy Holdings Ltd. were up less than 1 percent. A smaller South Korean company got hit, though larger Korean companies including Hanwha Chemical Corp. and OCI Co. climbed. One potential explanation flagged by analysts: panels account for only about 20 percent to 30 percent of total costs for building a solar-power facility.