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Speculation is growing that President Trump’s aggressive trade war with China may be set to cool as industries across the United States express concerns over the potential long-term effects of sustained tariffs on their operations. The future remains uncertain, however.
For Martin Pochtaruk, every moment counts. As the CEO of Heliene, a North American solar manufacturing company, he faces a busy agenda filled with internal matters and media engagements. Yet, he finds a moment to share his thoughts with those who might not seem significant in the broader context, including myself.
I spoke with Pochtaruk just after Trump announced a temporary pause on sweeping global tariffs that posed a risk to the stability of the U.S. economy. This timing is particularly crucial for Pochtaruk, as Heliene is in the process of fine-tuning two solar manufacturing lines in partnership with Premier Energies. One line has recently begun operations in India, while the second, which will double Heliene’s capacity in Minnesota, is on track to mirror it.
Unexpectedly, Indian imports have been hit with a new 27% tariff that drastically alters the previous rate of zero. In addition, solar cells sourced from Laos now face a 48% duty, up from no tariffs at all.
“We have orders for solar cells from Laos and India set for June, July, and August,” Pochtaruk noted, explaining that Heliene typically fixes its prices up to 120 days in advance.
“So when someone says there’s a 48% import duty, that translates to three to four million dollars per month.”
Negotiation Hopes
On a recent Wednesday, Treasury Secretary Scott Bessent mentioned that he anticipates India will be the first to establish a bilateral trade agreement to circumvent Trump’s reciprocal tariffs. Speaking at a reporter roundtable, he suggested that discussions with India are nearing a favorable conclusion, as the nation does not have excessively high tariffs.
This development would be welcome news for Pochtaruk, as the persistent 27% tariff would render the solar cells produced in India nearly nonviable for the U.S. market.
Historically, since the Trade Act of 1974, trade actions typically had to be processed through the Department of Commerce, providing parties involved a reasonable timeframe to adapt their supply strategies. However, the rapid implementation of new duties has left many scrambling.
“On April 2, the directive came through within three business days, stating that these duties would be enacted,” Pochtaruk reflected. “That’s not enough time to prepare.”
“The issue isn’t whether a duty exists, but rather whether businesses can plan accordingly to adapt. Everyone manufacturing modules in the U.S. previously sourced cells from Vietnam, Malaysia, and Thailand, and had ample time to innovate their supply chains,” he elaborated. “Now, we’re struggling to maintain that flexibility.”
Finding alternative suppliers, acquiring new solar cells, and completing the necessary testing and certification processes can take nine months or more, Pochtaruk explained to Factor This. He is eager to receive initial samples from his n-type production line in India by June and hopes to have them certified by October.
“I believe the administration is acting with a purpose, but for those of us in the business, these changes create significant hurdles,” he stated.
Recently, Norsun CCO Carsten Rohr and Heliene’s Pochtaruk inked a multi-year deal for Norsun to supply Heliene with U.S.-produced silicon wafers starting in 2026.
Facing New Challenges from China
As per the Office of the U.S. Trade Representative, the U.S. exported $143.5 billion worth of goods to China in 2024 while importing $438.9 billion. Many American businesses are heavily dependent on Chinese products, and the shifting landscape regarding reciprocal tariffs presents formidable challenges, including the current stunning 145% tariff rate on Chinese imports.
This rate has risen sharply after remaining stable at 25% for seven years. In an effort to circumvent expected increases in Chinese tariffs, Heliene proactively dispatched equipment for its newest n-type line in Minnesota earlier this year.
“For the equipment related to line three, we only paid the original 2018 25% tariff,” Pochtaruk confirmed. “We took precautions by shipping early, anticipating changes, and our strategies proved sound.”
However, procuring equipment for solar manufacturing poses challenges since much of it is not produced domestically. Heliene and Premier Energies rely on about half of their equipment from China, with the other half sourced from Europe.
“Our objective now is to identify suitable equipment from European manufacturers,” Pochtaruk remarked.
“But what really unfolds?”
Prices escalate universally; that’s the outcome. Following the government’s imposition of new tariffs on Chinese imports in February, the prices of solar glass, a component not manufactured in the U.S., rose. Pochtaruk noted that when imported glass prices surged, alternative suppliers in Malaysia and India followed suit.
“Why? Because they could.”
A notable case in point is Heliene’s procurement of U.S.-made aluminum frames since April 2023, which involves a slight premium. The moment prices on imported aluminum increased due to new tariffs, U.S. suppliers raised their prices similarly.
“Why? Because they could,” Pochtaruk echoed.
“As soon as the cost of Chinese equipment rises, competitors will increase their prices accordingly,” he continued. “You may bring in European equipment, but higher demand will lead to elevated prices across the board. Again, it comes down to market dynamics and their ability to charge more.”
Preparing for Uncertainty
Pochtaruk remains open to suggestions for diversifying his supply chain but is not actively seeking external financing or refinancing opportunities.
“During periods of uncertainty, securing financing is a challenge,” he explained. “Financial institutions prefer clarity, and the evolving situation complicates that.”
Having operated for around 15 years, Heliene holds a backlog of orders extending years into the future, and Pochtaruk feels confident about navigating the current climate. However, he raises a concern for the broader industry.
“For competitors or companies in different sectors, the hunt for financing or credit amidst this unpredictability can be daunting,” he remarked.
Many companies, Heliene included, are anxiously awaiting the outcome of the 45x tax credits as well.
“It’s not mere curiosity,” Pochtaruk pointed out. “Lenders require these tax credits as collateral. That’s the reality today for all lenders involved in energy-related capital projects.”
As Pochtaruk continues to grapple with his packed schedule, he contemplates possible adverse scenarios while also hoping for a more favorable outcome. Among his current strategies is evaluating whether some Chinese products remain worth the high premium for import, a calculation he’s still working to finalize.
“You must prepare for the worst-case scenario,” he acknowledged. “If conditions improve, your clients will ultimately benefit from lower costs.”
In the final analysis, only time will reveal the direction this trade landscape heads.
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