First Solar Jumps 2.9% as Supreme Court Voids Import Tariffs
First Solar shares rose 2.9% in afternoon trading after the U.S. Supreme Court’s 6-3 decision invalidated Trump-era tariffs under the International Emergency Economic Powers Act of 1977. The tariff removal is expected to lower its imported module component costs and ease manufacturing expenses.
1. Supreme Court Invalidates Solar Import Tariffs
The U.S. Supreme Court ruled 6-3 that the International Emergency Economic Powers Act cannot justify the Trump administration’s solar import tariffs, effectively lifting duties on modules, glass substrates and other critical inputs.
2. First Solar Shares Gain 2.9%
Following the decision, First Solar shares climbed 2.9% in afternoon trading, with investors anticipating an immediate reduction in production expense for its U.S. manufacturing operations.
3. Cost Reduction and Margin Outlook
The tariff elimination is projected to lower imported module component costs, potentially improving gross margins and freeing capital for capacity expansion projects and research initiatives.