The U.S. Department of Commerce has imposed new tariffs on solar panels and related products from Cambodia, Malaysia, Thailand, and Vietnam. The tariffs, which can be as high as 3,521%, aim to address companies that allegedly dump cheap products in the U.S. while benefiting from Chinese subsidies. The impact of these tariffs varies across companies and countries.
One Korean manufacturer operating in Malaysia was affected, while four solar companies in Cambodia were hit with the highest rate of 3,521% after the country stopped complying with an industry practices investigation launched by the Biden administration. The announcement has positively impacted U.S. solar companies. Shares of First Solar rose approximately 7% in premarket trading, and Sunnova Energy was up more than 5% at one point.
In broader market news, major U.S. stock indices saw gains on Friday. The S&P 500 rose 0.7%, the Nasdaq 100 gained 1.1%, and the Russell 2000 remained flat. The “Magnificent 7” cohort, comprising some of the largest tech companies, had its best week since January 2023, rising 9.1%.
Alphabet shares ticked higher following strong engagement for its new AI-powered features, and Tesla surged nearly 10% after U.S. transportation officials rolled out a national framework to fast-track government use of self-driving cars.
Solar tariffs impact market dynamics
Several companies reported their earnings, leading to varied stock market reactions.
Charter Communications shares surged nearly 10% after losing fewer pay-TV subscribers than expected. T-Mobile missed its Q1 subscriber growth targets but reported solid earnings and raised its full-year forecast. AbbVie posted a Q1 sales beat, driven by demand for its popular Botox and Juvederm face-filler treatments.
Colgate-Palmolive shares slipped after the company trimmed its full-year forecast and warned about the impact of tariffs. Intel continued to slide after projecting lower-than-expected sales of $11.2 billion to $12.4 billion. Tesla stock has been performing well, up 9% on Friday and 17% for the week, closing above its 50-day moving average for the first time since January.
This surge was partly fueled by CEO Elon Musk’s plan to focus more on the electric vehicle company’s issues. The newly launched T-REX 2x Long GME Daily Target ETF, which offers exposure to double the daily move in GameStop shares, had a strong debut with more than $4 million in volume on its first day. These recent developments reflect dynamic movements in the market, driven by new government policies and company-specific news.
The U.S. solar industry, in particular, stands to benefit from the new tariffs, while other sectors continue to navigate the challenges and opportunities presented by a rapidly evolving economic landscape.
