The move follows a push by domestic manufacturers of both products to get U.S. trade officials to impose taxes on imports, as a way to protect them from international competitors.

Late last year, Whirlpool and GE Appliances asked for a 50% tax on washers from overseas competitors including Samsung and LG, both based in South Korea, which they accused of dumping cheap products in the U.S. Similarly, solar panel manufacturers Suniva and SolarWind had petitioned for tariffs, primarily on Chinese solar components.

China is the largest manufacturer of solar components in the world, and its prices are generally far cheaper than those for American products. American manufacturers of solar products have said a flood of imports from China has hampered their ability to manufacture.

The tariffs will add up to 50% on imported washers and parts, and up to 30% on solar components, according to the Office of the U.S. Trade Representative, the federal agency responsible for setting trade policy.

What’s a tariff?

A tariff, sometimes called a duty,  is a tax typically imposed by one nation on another’s imports. (In some cases, they can be levied on exports.) The tariff is generally calculated as percentage of the import’s total value, including freight and insurance charges.

In principle, governments impose tariffs to make their own products more competitive and affordable, and to generate revenues.

Think of it this way: The additional taxes imposed on LG washers will make them more expensive for U.S. consumers to buy, so they’re likely to shop around and buy cheaper models, presumably made by U.S.-based manufacturers.  And if they do buy the more expensive foreign product, the tariff adds to U.S. coffers.

The problem is that tariffs can also spark something called a trade war. That’s when nations retaliate by increasing prices for products they export, or by imposing their own tariffs on imports. That, in turn, can make things more expensive for consumers in both countries.

South Korea has already said it will appeal the tariffs to the World Trade Organization, and LG has said it plans to increase the prices of the washers it ships to the U.S. in retaliation.

“It’s likely this will result in higher prices and fewer choices for consumers,” John Taylor, senior vice president for LG Electronics, told USA Today this week.

How does this affect the solar industry?

The solar industry in the U.S. has really taken off because the price of solar panels, 80% of which are manufactured overseas, has fallen by about 70% since 2010, according to reports.

But the U.S. solar industry is based on innovation and installation, more than manufacturing solar components, experts say.

Shares of First Solar, a U.S.-based manufacturer of solar components increased 7% following the tariff announcement.

Solar installation is currently a $29 billion industry, and it’s the fastest growing segment of the solar market in the U.S., according to Slate.

While the tariff on solar products is likely to help companies manufacturing solar panels and other components in the U.S., it’s likely to hurt the companies that install solar systems in consumer homes and rooftops, as costs for components go up.

For example, shares of First Solar, a U.S.-based manufacturer of solar components increased 7% following the tariff announcement.*

Solar installers, however, expressed concern about the tariffs.

“The gains that may materialize in module manufacturing won’t be nearly as much as the near certain losses in the rest of the US manufacturing supply chain and installation jobs,” Kevin Bassalleck,  the president of Affordable Solar, based in Albuquerque, told Business Insider.

The post What Do Solar Panels and Washing Machines Have in Common? appeared first on Stash Learn.

The Cupertino, California-based tech giant held a special event Tuesday at its new Steve Jobs Theater to unveil its latest iPhones, including the iPhone X, as well as other innovations for the Apple Watch and Apple TV.

But it was the news about the latest iPhone models that created the most excitement.

“No other device has had the impact on the world that the iPhone has,” Tim Cook, Apple’s chief executive officer, said in prepared remarks during the streamed event. “Nothing else has put so much power into so many people’s hands.”

The iPhone X is the first major redesign of the iPhone since 2014

The 10-year-old iPhone is perhaps the most successful consumer device in recent history, and the latest model could push Apple’s market cap to a staggering $1 trillion or more, according to reports.

In addition to the iPhone X, which will begin shipping in November, Apple will release the Phone 8 and 8 plus, scheduled for release by the third week of September. These will have features including wireless charging and faster internal processors. The iPhone 8 will start at $699. The 8 plus will retail for $799.

So what’s inside the iPhone X?

The iPhone X is the first major redesign of the iPhone since 2014.

The handset’s feature list will include facial recognition technology, an edge to edge display, augmented reality camera, improved battery life, and animated emojis.  It will also eliminate the home button in favor of a touch screen that pairs with facial recognition to activate the phone.

Will the iPhone X be too pricey for consumers?

The high price is a definitely a gamble with consumers, numerous industry experts say, particularly as the cost of an iPhone has been edging up for years. In fact, the 7 plus, released in 2016, retails for $769.

Only 11% of consumers said they’d purchase a phone with a price tag of $1,000, according to a survey conducted by investment bank Barclays in August. (The majority of those polled said they don’t want to spend more than $560.)

Apple’s not alone in pushing up prices

Competitor Samsung’s new Galaxy 8, which will be available September 15, retails for $950. Together, Apple and Samsung control more than a third of the global high-end smartphone market. 

And for many consumers, smartphones have become a fact of life. They now reportedly spend about 4 hours a day on their mobile devices, which are doing double time as work tools for increasing numbers of people.

And if the price is a gamble, it’s clearly one Apple has thought carefully about.

One reason is that consumers plan to spend more cash on mobile phones in the coming years, according to the research firm Gartner. Another reason why: In the months following the release of its new phones, stock price tends to tick up dramatically. In fact, Apple’s share price in the year following the release of its iPhone 7 increased 43%.

Sources: FactSet and the Wall Street Journal

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