One would expect it to have that effect. If X is more expensive to obtain abroad, then you’ll tend to have more domestic capacity being developed – as long as it’s believed that the tariffs aren’t going to go away in the near future, since otherwise, anyone investing in solar manufacturing capacity stands to lose their investment.
Except this move is likely less about promoting domestic solar production and more about protecting oil, gas, and coal by making green energy alternatives more expensive.
One would expect it to have that effect. If X is more expensive to obtain abroad, then you’ll tend to have more domestic capacity being developed – as long as it’s believed that the tariffs aren’t going to go away in the near future, since otherwise, anyone investing in solar manufacturing capacity stands to lose their investment.
Except this move is likely less about promoting domestic solar production and more about protecting oil, gas, and coal by making green energy alternatives more expensive.
Your second part is why I’ve been saying we won’t be building factories.