SunPower (NASDAQ:SPWR) stock was soaring on Tuesday following positive news regarding how the company will be affected by the Trump administration’s import tariffs.
The solar panel maker manufactures most of its solar panels overseas, getting its solar cells and modules from Mexico and the Philippines rather than China before they import them to the U.S. to install them as solar panels. Thanks to this loophole, the company has gained exemption regarding the import tariffs on its solar panels.
This means that SunPower’s solar panels will be roughly 30% cheaper than the competition. The company is capitalizing on the move as its management has been talking to the U.S. Trade Representative (USTR) about the quality of its products, which it claims is higher than the “cheap, commoditized imports” from China.
The exemption was granted as the USTR said that the company’s IBC cells and modules are different enough to be excluded from the import tariffs that may cost up to 30% more.
SPWR stock was up about 14.4% on Tuesday following the news that the company’s solar panels will be exempt from the Trump administration’s steel tariffs. Company shares reached a high of more than $10 a share earlier in the year before the import tariffs announcement was made, which caused share prices to dwindle.
However, today’s rally helped the stock surge to about $7.53 per share.