Canadian Solar (NASDAQ: CSIQ) saw its stock plummet 5.63% in intraday trading on Thursday, as the U.S. solar sector reels from the impact of newly imposed tariffs by President Donald Trump on all imports into the country. The move has sent shockwaves through the solar industry, with several companies experiencing significant drops in their stock prices.

The new tariffs are particularly severe for countries that the U.S. heavily imports from, such as Vietnam (46% tariff), Thailand (36%), Cambodia (49%), and Malaysia (24%). These countries have been key manufacturing hubs for solar products, and the increased costs are expected to ripple through the entire supply chain, potentially affecting Canadian Solar's operations and profit margins.

Jefferies analysts commented on the situation, stating that the reciprocal tariffs "will lead to costs heading higher and contributing to a wider inflation narrative." They also noted that while there was already an anticipated shift away from these Southeast Asian countries due to earlier anti-dumping and countervailing duty (AD/CVD) tariffs, this latest move "accentuates the trend." The analysts suggest that in the near term, solar companies may face challenges as they scramble to adjust their supply chains and manage increased costs.

The broader impact of these tariffs is being felt across the solar industry, with other major players such as Maxeon Solar, Emeren Group, and Enphase Energy also experiencing significant stock price declines. The move has raised concerns about the potential for higher costs in the solar sector, which could slow down the adoption of renewable energy technologies and impact the industry's growth prospects.