How Tariffs on Chinese Solar Panels and Lithium Impact U.S. Clean Energy and Inflation

Tariffs on Chinese solar panels and lithium processing are increasingly seen as necessary steps for U.S. competitiveness in clean energy but carry inflationary impacts. Doug McIntyre and David Callaway discuss China’s lead in clean energy infrastructure, particularly in solar panel production and lithium processing for EV batteries. Chinese companies, like BYD, benefit from their country’s investment in green tech, which has created global dependency on Chinese components. The U.S. has imposed tariffs on some Chinese solar products, a move expected to continue under either presidential candidate. This week, however, a large lithium deposit discovery in Arkansas offers the U.S. new potential for independent lithium processing and battery production. While tariffs could hinder costs for American consumers, they are currently the primary measure to counter China’s dominance in green technology—a growing concern as the global clean energy race intensifies.