Array Technologies stock opened 20% up on Monday: this is why

Array Technologies Inc (NASDAQ: ARRY) stock is up 20% this morning on a Reuters report that said President Biden will terminate new tariffs on solar panels.

Details of the exemption on tariffs

The exemption for two years that’s relevant to imports from Cambodia, Malaysia, Thailand, and Vietnam will help mitigate supply pressures on the U.S. solar industry. Sources familiar with the matter said:

Array Technologies is an Albuquerque-headquartered company that designs and manufactures solar tracking systems. It reported better-than-expected results for its fiscal Q1 last month.  

Biden to invoke Defense Production Act

The report succeeds a months-long investigation by the Commerce Department into “whether imports of solar panels from the four Southeast Asian countries are circumventing tariffs on goods made in China.”

According to the anonymous sources, the U.S. President also plans on invoking the “Defense Production Act” that will direct loans and grants to ramp up domestic manufacturing of solar panels.

The Invesco Solar ETF is up more than 5.0% on Monday. It is now trading roughly at the same price at which it started the year 2022.