U.S. Tariffs Impact Solar Cell Production in China

Tariffs placed on solar panels made in China has helped to lower expectations for solar-cell manufacturer Trina.

The company recently lowered its earnings expectations for the quarter to 7 to 9 percent, down from 10 percent, as a result of the tighter U.S. regulations. China's solar-cell manufacturers had been producing large quantities of product for sale in Japan, the U.S. and other developed countries. Earlier this summer, the U.S. Commerce Department enacted antidumping tariffs on 31 percent of panels from China to protect American companies. The higher prices and continued economic uncertainty have lowered demand in North America, which is affecting Trina's overall sales.

"Shipment volume fell short of our targets as U.S. market uncertainty on the preliminary impact of the tariff resulted in stagnant demand in North America and the timing of several large projects in China was pushed to the second half," chairman and chief executive officer Jifan Gao said.

Trina manufactured fewer panels during the second quarter, lowering its production estimates to between 390 and 420 megawatts. As a result of the lower production and flat demand, Trina's stock has fallen 70 percent in the last 12 months.