Shares of Enphase Energy, Inc. ENPH are trading higher on Friday afternoon, possibly driven by President Joe Biden's recent announcement of increased tariffs on Chinese imports, which includes a significant hike on solar cells.
What To Know: The Biden administration imposed a 50% tariff on Chinese solar cells this year, up from the previous 25%. This move aims to curb the influx of cheap, subsidized Chinese products that have been flooding the global market.
These tariff hikes are part of a broader U.S. effort to address Beijing's trade practices, which the White House argues distort global supply chains. The administration asserts that these measures will protect American jobs and industries without contributing to inflation, despite potential concerns about economic impacts.
Related Link: Solar Stocks Are Rallying Wednesday: What’s Going On?
What Else: For Enphase, the increased tariffs on Chinese solar cells are likely to reduce competition from lower-priced imports, potentially boosting domestic market share and profitability. This policy change is seen by investors as favorable for U.S.-based solar companies, contributing to the rising share prices of Enphase and others in the industry.
ENPH Price Action: Enphase Energy Inc shares were up by 6.41% at $125.03 at the time of writing, according to Benzinga Pro.
Image: Courtesy of Enphase Energy, Inc.
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