Amid a significant shake-up in the market following the announcement of mutual tariffs by the Donald Trump administration in the United States, Hanwha Solutions and Kumho Petrochemical could be at a relatively advantageous position, according to Hana Securities on the 7th. These are companies that have already experienced the impact of tariffs once.
Yoon Jae-seong, a research institute at Hana Securities, pointed out the positive aspect for Hanwha Solutions is the difficulty in sourcing solar modules and cells from Southeast Asia. The U.S. Department of Commerce issued preliminary determinations for countervailing duties and anti-dumping duties on solar modules from China that are imported through four Southeast Asian countries (Cambodia, Malaysia, Thailand, and Vietnam) from October to November last year. Ultimately, a maximum tariff of 320% has been imposed. Importing solar modules from Southeast Asia has effectively become impossible for the U.S.
Since the proportion of imports from the four Southeast Asian countries for cells was high, the cost burden for U.S. module manufacturers has increased. Hanwha Solutions is relatively less affected by rising costs because it sources cells from Korea, and if the local Carter'sville plant in the U.S. begins operations in the second half of this year, some vertical integration will also be possible. Yoon noted that there is a possibility of the U.S. discontinuing subsidies under the Inflation Reduction Act (IRA) for solar facilities from China, and "if that happens, the amount of Hanwha Solutions' reflected benefits will increase further."
Yoon noted that the U.S. has already imposed a tariff of 50% in 2025 and 100% in 2026 on gloves from China, which he believes is advantageous for Kumho Petrochemical, a domestic NB Latex (NBL) corporation. Additionally, due to the imposition of further tariffs and mutual tariffs, exports of Chinese gloves to the U.S. have virtually become impossible.
Yoon identified KCC and UNID as stocks that could survive the tariff storm. He stated that "KCC generates over 35% of its silicone business revenue from the U.S., but most of it is focused on the domestic market," adding that "rather, competitors like Germany's Wacker Chemie, Japan's Shin-Etsu Chemical, and Norway's Elkem are subject to mutual tariffs, allowing for KCC to benefit from reflected advantages."
Yoon further remarked, "UNID has a mere 3-4% exposure to the U.S. on a consolidated basis," adding, "As the U.S. imposes tariffs on Canada, the largest importer of potassium chloride, it can benefit from rising prices of U.S. potassium chloride, caustic potash (KOH), and potassium carbonate (K2CO3)."