Solar Bankruptcies Show US Clean Energy Industry Is Teetering on the Brink
The US clean energy industry is starting to buckle under the weight of persistently elevated borrowing costs, President Donald Trump's anti-renewables policies and high tariffs.
The latest domino to fall is residential solar company Sunnova Energy International Inc., which filed for bankruptcy early Monday. Its demise follows the Chapter 11 filing last week of Solar Mosaic LLC, one of the biggest lenders in the rooftop solar market.
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Politico
15 minutes ago
- Politico
Trump may have to choose: Making trade deals or keeping his car tariffs
President Donald Trump is telling domestic audiences he won't cut his 25 percent tariffs on foreign cars as part of any trade deals he negotiates. But other countries — who collectively send millions of vehicles to the U.S. each year — haven't gotten that message. Trading partners like the EU, Japan and South Korea are laboring under the impression that the auto tariffs, which Trump imposed in April, are still on the table, according to two people familiar with the talks between Trump officials and those countries, granted anonymity to discuss private conversations. If Trump is really unwilling to lower or eliminate his tariffs on foreign cars, it could prove to be a major hurdle to securing meaningful trade deals with some of the country's top trading partners. Japan, South Korea and Germany sold more than $121 billion in cars and car parts in the U.S. in 2024. The White House did not answer when asked if auto tariffs were on the table for negotiations and instead reiterated the goal of the tariffs. 'No president has taken a greater interest in reviving America's once-dominant auto industry than President Trump, and the auto industry is a key focus of the Trump administration's trade and economic policies,' said Kush Desai, a White House spokesperson. 'Discussions with our major trading partners continue, and the Trump administration continues to seek better trade deals for American industries and workers.' A decision to lift the tariffs for more countries, particularly those whose companies compete most fiercely with American carmakers, risks alienating a powerful manufacturing bloc and undercutting a central tenet of Trump's trade agenda — forcing companies to build more products in the U.S. The Trump administration has assured American automakers that when it comes to auto tariffs being used as a bargaining chip, they have 'nothing to worry about,' according to a person familiar with discussions between the administration and Detroit's 'Big Three' auto companies, granted anonymity because of the sensitive nature of the talks. Trump has said a deal to lower the tariff on a small number of British cars, announced last month, was an exception. 'I won't do that deal with cars' for other countries, Trump said when announcing the terms of negotiation with the U.K. on May 8. The British auto brand Rolls-Royce is 'a very special car and it's a very limited number too. It's not one of the monster car companies that makes millions of cars,' he noted. Even that agreement, which lowered the tariff on 100,000 cars, less than 1 percent of total U.S. annual car sales, drew a sharp rebuke from U.S. automakers. 'This hurts American automakers, suppliers, and auto workers,' the American Automotive Policy Council, which represents General Motors, Ford and Stellantis, said at the time, saying they hoped it 'does not set a precedent for future negotiations with Asian and European competitors.' The tension between the two goals — boosting domestic auto production while also negotiating delicate agreements to lower trade barriers — highlights the challenge facing the administration as it races to secure deals with dozens of countries before the president's double-digit 'reciprocal' tariffs are slated to kick back in next month. 'To ease the sting of those tariffs on the auto sectors for Korea and Japan is of course a high priority for them,' said Michael Beeman, a former assistant U.S. trade representative who focused on Japan and South Korea. 'I think for those countries, to be able to declare success from the talks at home, they would expect some sort of consideration.' The auto tariffs have already been a sticking point in negotiations with Japan and South Korea, both of which are invested in maintaining a high level of domestic auto manufacturing. Auto exports from South Korea to the U.S. have exploded over the past 20 years, from $8.7 billion in 2005 to $37.3 billion in 2024, according to data collected by the Census Bureau. Japanese Prime Minister Shigeru Ishiba has said publicly that any trade deal with Japan would have to result in lower auto tariffs. Now, as the two countries are on their fifth round of talks, with a planned meeting between Ishiba and Trump at the G7 in Canada in two weekends, both countries are projecting optimism about a deal. 'I think we'll also need to address, at a minimum, the auto [Section] 232 tariffs,' said Wendy Cutler, a former negotiator with the U.S. trade representative's office and the vice president at the Asia Society Policy Institute, said when asked what it would take to get a deal with Japan. Cutler said any deal with Japan or South Korea could have a lower tariff for a certain number of vehicles, similar to the deal with the U.K. Or, 'they could also just be very vague and say that the U.S. notes Japan's concern on the auto tariffs, and both sides agree to negotiate possible lowering of the tariffs in this detailed negotiation to follow,' she said. Trump has already agreed to lower tariffs on automobiles once. In his first trade agreement since imposing a global 10 percent tariff on nearly every U.S. trading partner and potentially higher rates on more than 60 countries, Trump struck an agreement with the U.K. that would allow the country to ship 100,000 vehicles into the country at a 10 percent tariff — lower than the current 25 percent tariff on automobiles and auto parts. The deal drew condemnation from American automakers, who noted that it meant a lower tariff on cars imported from the U.K. than on North American-made cars that include U.S.-made parts. They expressed concern that lowering tariffs with major auto manufacturing countries like Japan, South Korea and Germany would make it more expensive to build cars with parts from North America — creating an unfair playing field and effectively undercutting the administration's effort to boost domestic auto manufacturing. Vehicles made across the integrated North American supply chain still face a 25 percent tariff on non-U.S. made content, even if the vehicle is compliant with the U.S.-Mexico-Canada trade agreement that Trump negotiated in his first term. The Trump administration has continued to press foreign automakers to move production to the U.S. Last week, Trump met with German automakers, who offered $100 billion in investment in the U.S., according to Commerce Secretary Howard Lutnick. Trump — and Republicans on Capitol Hill — say those commitments are a sign that tariffs are working. 'They make BMWs in South Carolina, Volvo. They make Mercedes in Alabama,' Sen. Lindsey Graham (R-S.C.) pointed out during a Senate Appropriations Committee hearing Wednesday. Under Trump, 'They're talking about making the engine now in South Carolina. They're talking about more content in South Carolina.' There has yet to be an uptick in U.S. auto manufacturing, however, a reminder that the investment pledges will take years to fully develop. Auto manufacturing jobs held steady between April and May, though there were 2,240 fewer auto manufacturing jobs in May, compared to 2024, according to the Bureau of Labor Statistics. While welcoming the announcements, the Trump White House has given no indication the investment pledges will convince the president to lower auto tariffs on foreign countries. 'I mean, unless somebody shows me that there's another kind of a car that's comparable to a Rolls-Royce,' Trump said in May, 'and there aren't too many.'
Bloomberg
15 minutes ago
- Bloomberg
Johnson Urges Senate to Minimize Changes to $40,000 SALT Deal
House Speaker Mike Johnson said he's pressuring Senate Republicans to refrain from changing a deal to increase the state and local tax deduction cap to $40,000, pushing back on President Donald Trump's willingness to scale back the write-off. 'I've asked them to modify it as little as possible because I've got a very delicate balance there,' Johnson told reporters at the White House on Monday.
Los Angeles Times
16 minutes ago
- Los Angeles Times
Home Depot caught in the crosshairs of L.A. immigrations raids
America's best-known hardware store chain, Home Depot, has found itself at the center of the federal immigration raids in Los Angeles, and the subsequent protests. On Friday, a Home Depot in the Westlake neighborhood was among several locations hit by federal agents, who also raided Ambiance Apparel in the garment district in downtown L.A. as part of a crackdown that led to the arrests of dozens of people. The arrests outside Home Depot targeted day laborers hired by the chain's customers, including homeowners and contractors who rely on undocumented workers for home repair and construction jobs. Day laborers have been crucial to rebuilding efforts after Los Angeles County's devastating January firestorms. On Saturday, a Home Depot in the predominantly Latino suburb of Paramount, which is south of Los Angeles, also became the site of clashes between protesters and authorities. After a weekend of protests, officials also carried out raids at Home Depot locations in Whittier and Huntington Park on Monday morning, and reports of additional raids at other Southern California Home Depot locations spread across social media. A spokesperson for Home Depot confirmed Monday that the company had not been notified of any of the raids at its locations ahead of time and that the company was not involved in any of the operations. The Atlanta-based chain now faces a difficult situation, with its locations serving as a frequent site of raids, potentially turning away customers. Home Depot shares closed at $36.20, down 0.6%, on Monday. The company reported revenue of nearly $40 billion in its fiscal first quarter this year, up 9% from a year earlier. Net earnings for the quarter were $3.4 billion, down from $3.6 billion during the same period last year. It's not the first time the company has made headlines as the subject of controversy. Home Depot's co-founder Bernie Marcus donated at least $14 million to support Donald Trump's first presidency and pledged to support his reelection bid. Marcus, who died in 2024, had a reputation as a Republican megadonor. Protesters called for a boycott of the company in 2019 over his donations. The chain has tried to distance itself from its founder, stressing that he left the company in 2002 and that his donations and statements were not on behalf of Home Depot. Home Depot locations have been for decades convenient spots for contractors and those embarking on home improvement projects to hire skilled laborers. The construction industry in Southern California depends heavily on immigrants and day laborers, a reliance that has been highlighted by recent fire recovery efforts in the region. Jorge Nicolás, a senior organizer at a day labor center run by the Central American Resource Center, or CARECEN, said day laborers often take on undesirable jobs or jobs with tough conditions, making them crucial to many construction jobs. 'The majority of immigrant workers usually are used to help developers control construction costs and stay within the timelines that they have projected,' he said. 'Those are the extra hands that are needed.' Nicolás was in Westlake on Friday when immigration officials carried out a sweep outside of the Home Depot there. CARECEN's day labor center is just minutes away from the store. He described the scene as chaotic, and even workers who he knows have legal status were fleeing in fear, he said. 'We felt powerless,' Nicolás said. 'They're not arresting motorcycle gang members. They're not arresting international drug dealers. They're arresting grandpas. They're just arresting people that are very humble and looking for an opportunity, just trying to get a decent living.' By Monday afternoon, the parking lot of the Home Depot in Huntington Park was busy, with nearly 100 cars and pickup trucks filling the lot. There were few signs that a raid had taken place just hours earlier, but Bradley Cortez and his friends stood in the lot, keeping their eyes peeled. They came shortly after they got word of the raid, but Cortez said they were too late. He drove from Bellflower, roughly 10 miles south of Huntington Park, in hopes of helping the 'hardworking men' who were being targeted by immigration officials. 'I'll put my life at risk because I've I got papers. I was born here, so if I'm able to help somebody, of course I'll help them,' said the 23-year-old, who works in construction and frequents Home Depot locations himself to find jobs. 'It is a little scary being out here, but that's what is being brave about,' he said. 'Being brave is when you're scared. And I'm being brave for my people.' Times staff writer Ruben Vives contributed to this report.
