Tariffs and Potential Inflation

[BigHornRam]

Helienne. Should be able to Google it and find mention of their decision being based on concerns with threats made by the incoming administration.

My understanding is that there are Chinese panels available but quality concerns exist with them....I know someone who's been waiting months for the good panels he ordered to come in.

That's funny. The Heliene website says that their supply chain is short.

Story you are referencing.

Potential MN solar cell plant on pause as Trump weighs climate tax credits

Canada-based Heliene Inc. won’t move ahead with building the second solar cell plant in the U.S. until it knows how Trump will handle the Inflation Reduction Act. Heliene assembles solar parts on the Iron Range and soon in Rogers.

www.startribune.com

If a Canadian company needs USG subsidies in order to move their business into the USA, sounds like a shakey business to begin with.

 

[SAJ-99]

Not exactly.

Risk = probability x expected potential cost

Potential costs with tariffs could break companies - so independent of the probability being low there is obvious risk

The only way you front load purchases is if you know you, the importer, will have to pay the tariff if they come. Also predictable, if they do happen, they will pass it all through to the customer, at at least at the start.

 

[Alpine01]

That's funny. The Heliene website says that their supply chain is short.

Story you are referencing.

Potential MN solar cell plant on pause as Trump weighs climate tax credits

Canada-based Heliene Inc. won’t move ahead with building the second solar cell plant in the U.S. until it knows how Trump will handle the Inflation Reduction Act. Heliene assembles solar parts on the Iron Range and soon in Rogers.

www.startribune.com

If a Canadian company needs USG subsidies in order to move their business into the USA, sounds like a shakey business to begin with.

That was one of the factors I incorporated into my solar energy business cases. You have to consider the cases where subsidies (upfront manufacturing, and back-end tax credits) aren't in the mix. Those can be huge swingers relative to positive/negative ROI and NPV metrics.