Shares of solar panel makers have reacted on Thursday after Obama administration endorsed tariffs on Chinese solar panels.
The US government stated that China has subsidized firms that are flooding with the US with low-cost panels. In reply to the tariffs imposed by the US government ranges from 18% to about 250%.
Both China and the US based solar companies have gained in the afternoon trading. US firms have applauded the upheld tariffs. Some Chinese firms have made profits as the tariffs are lower than opening tariffs forced in May.
First Solar, Inc.(NASDAQ:FSLR) shares, based in the US, rose 71 cents to $21.74. Another big gainer is Canadian Solar Inc.(NASDAQ:CSIQ) that has its operations in both China and the US. Its stocks have increased 9 cents to $2.72.
Canadian Solar has issued a statement mentioning that it was disappointed with the final determination of the Commerce Department. It stated that it will stay committed to the US solar energy market, influencing its international supply chain to provide fairly priced solar energy solutions.
American depositary shares of Trina Solar based in China increased 9 cents to $4.24. The firm had initially stated that solar cells or other parts affected by the responsibilities could be replaced with parts from other nations.
American depository stocks of LDK Solar Co., Ltd (ADR)(NYSE:LDK) Ltd. based in China dropped 3 cents to $1.01. Shares of Suntech Power Holdings Co., Ltd. (ADR)(NYSE:STP), another company based in China, fell 4.16 cents to 853 cents.
The Chinese government had no prompt response on Thursday to the Commerce Department’s action. The Chinese state-run news agency, Xinhua has released an analysis contending that the US was putting itself into predicament by refusing solar panel buyers the amenities of huge economies of scale of China.
To the disappointment and anger of Chinese regulators, a number of solar panel makers in China have followed the general pattern of using prolific loans from state-owned banks to purchase and install foreign factory equipment.
Other notable gainers, Yingli Green Energy Hold. Co. Ltd. (ADR)(NYSE:YGE) soared 5%, JinkoSolar Holding Co., Ltd.(NYSE:JKS) added 12% and Trina Solar Limited (ADR)(NYSE:TSL) climbed 1.20%.