St. Paul solar business shares concerns over Trump copper tariff announcement

CBS News

5 hours ago

Copper is needed for many items we use every day, from wiring and plumbing in our homes to appliances and electronics.
President Trump on Wednesday announced a 50% tariff on U.S. copper imports starting August 1.
The metal is right below Earth's surface, but its power runs deep. All Solar Energy in St. Paul, Minnesota, requires wire with copper inside for their solar panel projects.
"We got clarity on the federal adjustments to tax credit, and then boom, the copper," Michael Allen, CEO of All Solar Energy, said. "I don't anticipate this to stop. I anticipate they will continue to do this."
The announced copper tariff comes after the tariffs on aluminum and steel.
"It's wild, I would say. Not a lot of sleep is happening. My wife has noticed that the last couple of weeks that there's a lot less sleep..." Allen said.
His restlessness has yielded some ideas. The company is stocking up on supplies now, hurriedly trying to pre-order, but time, advanced cash and space are limited.
"I can tell you our warehouse directors are absolutely barking to get more space," Allen said.
It's a scenario that comes as no surprise to Paul M. Vaaler, a University of Minnesota business law professor.
"It's the uncertainty," Vaaler said. "That's the worst part, is the uncertainty that it creates."
The tariffs are creating uncertainty for many start-up or family-owned organizations.
"These are examples of the 500,000 small businesses that are the backbone of the Minnesota economy," Vaaler said.
The state's economy is one that Allen is determined to maneuver. He's doubling down on the commercial side of business and trying to stock up as space allows.
"This is really difficult to have to continue to manage, and to have to continue to change your plans or your ideas or your communication with your customers and your employees," Allen said.
It's also been difficult for Allen to build a budget.
"At the end of the day, these are all additional costs and expenses that weren't planned for and unfortunately have to be passed on to customers the majority of the time," he said.
Allen vows to keep going.
"This is a speed bump, not a road closure. We have to slow down a little bit, but then we will be able to continue forward," he said.
Mr. Trump says copper tariffs are a matter of national security, and he wants the U.S. to ramp up production at home.
Right now, the U.S. imports roughly two-thirds of the copper the nation uses from Canada and Chile.