Trump executive order places 25% tariff on aluminum and steel

U.S. President Donald Trump signed an executive order to add 25% tariffs to imported steel and aluminum from most global providers.

Aluminum and steel are both important inputs in solar manufacturing. The tariffs are expected to increase costs for all project types, from the small residential solar projects to the largest utility-scale solar plants.

SinoLink Securities said that aluminum frames were the most expensive solar panel manufacturing component in November 2024, representing 14% of total solar panel production costs.

Aluminum is a common material used for frames on solar panels. It is also commonly used in rooftop solar mounts and racking. Steel is often used for solar ground mounts, including fixed-tilt and sun-tracking mounts.

The tariffs are enforced under section 232 of the Trade Expansion Act of 1962.

Trump first enacted 25% tariffs on steel in 2018. The new order removes exempted countries and extends the tariffs.

“[Steel tariffs have] been an effective means of reducing imports, encouraging investment and expansion of production by domestic steel producers, and mitigating the threatened impairment of U.S. national security,” wrote President Trump in his order. “Following the initial imposition of 25 percent ad valorem tariffs, the U.S. steel capacity utilization rate increased to above 80 percent.”

Popular content

U.S. surpasses 50 GW of solar module manufacturing capacity

04 February 2025 The buildout is happening across the domestic solar supply chain and, at full capacity, planned facilities will produce enough to meet the demand for...