II U.S. Tariffs Against Chinese Solar Panels In May 2012, the Obama administration imposed stiff tariffs on solar panel imports from China. Local firms had appealed to the U.S. Commerce Department, which ruled that Chinese companies were dumping the solar panels in U.S. markets below cost. Chinese importers receive low cost loans from state-run banks. In campaign speeches, President Obama promised to crack down on unfair competition from Chinese imports.

a. Which anti-globalization arguments, described in this chapter, might U.S. firms have used to convince the Commerce Department to impose the tariffs?

b. As a result of the tariffs, what is likely to happen to the prices that American consumers pay for solar panels?

c. What might China do in retaliation against the tariff on solar panels?

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